Dow Futures up 191 points heading into Mondays Open
Dec 8, 2008 Small Cap Stock Picks, Technical Analysis
Dow futures are up big along with global markets late Sunday as we head into another week of….. WTF is gonna happen this time? Technically the DOW chart looks to be breaking a descending wedge pattern that began to form in mid-september. Which was around the last time i made any swing trades and was forced to adapt to strictly day trading as holding anything over night became a huge risk with huge gaps up and down and an enormous amount of volatilty that could put you in a hefty losing position if you were swinging the wrong side.
Now with futures up big Sunday you can pretty much throw out the charts from friday as stocks will likely gap up big if they stay on this course. From there predicting if this is gonna be a gap to crap or a break away gap is well….. impossible to predict. Weak sentiment and a history of false breakouts over the past several months statistically would say the rally is gonna be sold. Look at when this broke out last time on the chart (descending wedge). The DOW tanked 700 points for the 4th worse drop in DOW history. So its a tough one to call we’ll just to see what happens in the morning and play it out from there. Playing the open is gonna be a huge gamble and i won’t participate. I imagine we will see the DOW swing some 200 points in either direction in the first 20 minutes. Day trade that on the wrong side and you’ll have a heart attack.
Heres an interesting article on the consequences of the auto makers bailout.
Technical Analysis of the Dow
Tags: auto makers, DOW, swing trades, Technical Analysis
