I am going to post trade orders for a new intermediate-term trade. The stage is set, but there is obviously no indication from price yet that the current leg up is done. As for the ending diagonal pattern suggested in the Dow a day or two ago, it either is not a an ending diagonal, OR the pattern is not complete yet. Since yesterday and today have been pretty narrow range days, that could still be the case.
In short, dumb money measures show extreme confidence in this uptrend continuing, and smart money measures show a low level of confidence. The indexes are overbought on both daily and weekly time frames. We are entering a period of negative seasonality beginning today and going for the next few weeks. There are several indicators that I have shown or discussed recently to suggest that the market is showing signs of excessive speculation even on a long term basis, so now it is just a matter of price giving a little confirmation to the downside to take the trade.
New Blog Trade:
Place a stop order to buy DXD at 29.00. This order will not be filled unless the Dow falls a bit and DXD rises to 29.00.
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