Last Update: 10/2/2018
(follow me @2kaykim for the future updates)
9/18/2018
Bulls are on a mission to close this “Down-Gap” that has been open since 1/30 this year; about 264.15ish on DIA to close this gap to finally leave the bears with nothing. Keep in mind, it took 8 months (more than a half year) for the bulls to come back, so the bears, definitely, made things very hectic for the bulls with this. So now, the bulls must fill this gap and finally claim victory. If the gap gets filled it could act as short-term resistance, so gaping it over this gap would be the best option to not even deal with its resistance-characteristic. I’ve been accumulating CALLS since April of this year, and as of today, I am still holding FULL positions. More updates later.
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9/19/2018
Today, after 8 months later, the bulls finally have filled the down-gap from 1/30, and all that selling pressure inaugurated from that down-gap so this is big deal. The bulls finally have reclaimed it’s control by killing this down-gap; and this is medium to long-term bullish; but because of the gap was filled, its short-term bearish. Ever since DIA broke above 257ish, it has been showing relative strength last few weeks, even today, leading the entire market. To celebrate this event, I have closed out 1/4 (25%ish) of my total holding CALLS-the CALLS were closed from the positions I entered back in early April while holding remainder CALLS entered later dates. Should the price decline, we want to see 260-257ish to hold for this buying pressure to continue. More updates later.
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• CALLS ENTRIES: 242.44, 246.10, 246.49, 249.73, 255.99
• EXITS: 1/4 @ 264.77
Above chart screened during the mid day
9/20/2018
It’s funny, because just couple of months ago many traders whining that the Dow is lagging and how this is the sign market weakness. Isn’t it interesting, we’ve had one of the biggest buying-pressure days last few days in the market just as the Dow is breaking out here. Dow (almost +7% YTD) is not too far from catching up to S&P (+9% YTD); and with just little bit of patience I was able to make my DIA trades profitable. Last two days very important events took place for DIA: Yesterday, DIA filled the down-gap from 1/30, and today, we gaped up printing new all-time highs–and in the process, DIA has completely broken out to the upside from the rising wedge pattern (technical books and the “experts/gurus” you follow on Twitter often shares the “Cheat Sheet” that says this rising wedge is a “bearish” pattern). For this minor-term bullish sentiment to continue, we want the price to stay above 266-264, and it will be even better if the bulls get protect this gap that was open today, let’s see how it plays out. More updates later.
TIME-STAMPED
• CALLS ENTRIES: 242.44, 246.10, 246.49, 249.73, 255.99
• EXITS: 1/4 @ 264.77
9/25/2018
Few things happened here since my previous update:
- The gap has been filled (micro-term bullish signal)
- Now retesting the rising-wedge resistance as potential new support
Let’s see if the bulls can protect this level for the short-term momentum to continue to the upside, if we do break lower, the rising-wedge support (bottom rising blue line) is the next level of support to watch.
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• CALLS ENTRIES: 242.44, 246.10, 246.49, 249.73, 255.99
• EXITS: 1/4 @ 264.77
10/2/2018
IWM has been tanking for few weeks and under-performing while DIA has been leading the market and out-performing as of late. If you follow my weekly Market Update videos, you remember my analysis weeks/months back as I was saying, ‘why chase Russell {because at the time DIA was lagging while IWM was thriving}? Why not pay attention to the index that is lagging such as the Dow?’ It is in our human nature to follow the “leader” and to follow the herd, but market punishes the followers and the chasers; and reward those who are patient. I definitely have been patient with my CALLS on DIA since my first acquired CALLS back in early April. Even today, Dow stands tall, only index to finish the day positive (DIA +0.31% vs IWM -1.08%).
Prior resistance is holding as new support (blue arrows) and the gap is sustained so far. As long as we get that gap to remain open, I want to give benefit of the doubt to the buyers in the minor-term. Another interesting fact is, while the SPY has the bearish divergence in it’s path, DIA does NOT have the bearish divergence — shows relative strength internally as well. I think it could continue higher as I still hold sizable call-positions here.
TIME-STAMPED
• CALLS ENTRIES: 242.44, 246.10, 246.49, 249.73, 255.99
• EXITS: 1/4 @ 264.77
SEE PART: 1, 2
