Last Update: 6/20/2018
4/19/2018
I have decided to enter CALLS earlier today at 246.10. I think, still, lot of work needs to be done but I concur that bulls can get it done in due time. Currently DIA is sitting on previous resistance that could potentially become a support (horizontal red box) while the price is attempting to escape from the intermediate-term downtrend resistance-line (blue dotted) – which, it does not mean (at least not yet) the trend has reversed (it is only showing this downtrend is slowing). Yes, there are still many bears (selling pressure) lingering around to attack the bulls at full force and bring this thing down; so, I would have to be prepared to battle the bears in this vicinity as the bulls trying to find some momentum here. Let’s see how it plays out, more updates later.
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ENTRIES: 246.10,
4/26/2018
I added more CALLS at 242.44 earlier today. Bulls still got lot of work to do, and the turbulence will continue as the market tries to stabilize here while the bears are pumped on a down-day and terrified on a up-day. This is the time to “Be Greedy When Others Are Fearful.” Just go and roam around the social media streams, EVERYONE (including so called experts/gurus) is freaking out saying things like. “raise cash” “time to be defensive” “place a tight stop” “be nimble (this one is truly the stupidest thing I’ve ever heard)“- Yes, they are scared. Funny thing is, these same people were saying things like, “I’m sticking with the trend” “What’s wrong with new all-time highs” being complacent in late January right before the flash crash. What was I doing in January? I was unloading and buying up VIX CALLS as I warned my readers, “Cocky Bulls, Buckle Up!” So what I am doing these days? Not only I’ve been buying CALLS on the indices but accumulating shares on multitude of the stocks I own since 2016-2017.
249 is the level to overcome for the bulls to find some good momentum here – it could get there as fast as tomorrow or it could take time. Let’s see if the bulls can defend this vicinity in the next few days as the “gap filled” area is acting as support so far – more updates later.
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5/14/2018
DIA has seen a good sequence of a bull-run for about 2 weeks here since the early May. And with that, it has cleared recent resistance of 248ish and that was a good cultivation to create higher high here while letting the bears sweat a little bit. However, if the price slides this week, we want to see 248 level to hold as a possible new support but if we lose that level we want to see 245 level to hold for a bounce. I don’t think we are overbought yet (see my recent post on SPY – note the “Oscillator Breakout” because DIA oscillator looks very similar) so we could very well continue to higher possibly with just few short days of a pullback. Next level for the bulls to evade is 254-257 level and more severe battle will be taken place in that vicinity. I think bears are starting to get nervous as the market tries to stabilize here, but also, bulls are not out of the woods yet until they take out 254-257 on DIA.
I am holding ALL of my CALLS since 246.10 and 242.44 as of today.
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5/21/2018
On my previous update (above) we talked about how the bulls needed to protect 245-level for a continuation to the upside; well, the bulls were able to do that and took advantage of the situation by gaping it up this morning, showing, relative strength, leading the entire market today. As you can see in the updated chart below, the bulls are now attempting (I say “attempting” because we’ve all seen failed breakout before) to breakout of the 7-day bull pennant consolidation here – its a good start today, but like I’ve mentioned on my recent Market Update video that it may or may not fail. But, what’s important is, the bulls protecting the gap from this morning and protecting 245-level should the price starts see some ‘shenanigan‘ this week. So, the current battle ground for the bulls to maintain and protect is the gap area to find this momentum to continue to the upside. Bears are slowly losing lot of it’s ground giving too much real estate to the bulls (since the early this month), let’s see if the bulls have some more energy left to battle and charge to the upside.
I’ve decided to add more CALLS earlier today @ 249.73, and currently holding all of my positions – more updates later.
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ENTRIES: 246.10, 242.44, 249.73
6/6/2018
DIA trades have been, bit, trickier this year but it is starting to play out with little bit of discipline and patience. Especially, today was a good day for the bulls as DIA is now breaking above the prior resistance here. DIA has been lagging compare to other indices for weeks, but today, we are seeing DIA leading the market with +1.36% again vs +0.84% gain on SPY. Here are some good battles we’ve seen from the bulls where they created few up-gaps (still remaining open today) from 244-249 – these levels are going to provide a real estate bulls can stand on should the bears trying to bring it back down. You can also see that bulls have been cultivating higher lows and higher highs – minor-term uptrend is developing here. Bears are losing this battle since the end of April, and I think bulls are going to push this thing to 257. As of today, I am holding full CALL-positions since 246.10, 242.44 & 249.73 – more updates later.
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ENTRIES: 246.10, 242.44, 249.73
6/20/2018
Earlier today I’ve decided to add just a little more CALLS @ 246.49 on DIA. DIA has been the biggest lag-er compare to the other indices such as IWM; but it’s ok, sometimes it takes time for the lag-er to catch up to the leader. I am actually rotating money within my portfolio as I’ve closed some of my IWM CALLS today (that I entered back in early February), and putting that money into DIA CALLS here. Currently the gap area at 245 is still open, it may or may not be filled but it will help the short-term bulls if we can keep that gap open. So I think as long as DIA can hold above 244 in the minor-term we may see a another push here. Let’s see how it plays out. As of today, I am holding everything – more updates later.
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ENTRIES: 246.10, 242.44, 249.73, 246.49
