I missed it on the DOW. Qs Still look good.

Fig 1.

It looks like I fell short on my Dow prediction. I predicted that the DOW will reach 13,300 by the middle of May. I did hit 13,132 on the 2nd of May. I could declare victory because I got close but, I won't. If you look at Figure 1, the DOW seems to be starting to trade sideways around the 12,950 level. If the price goes through the lower median line(ML) on the red pitchfork then, the market will continue sideways or it could start to trade down toward support on the lower ML on the purple pitchfork. If the support of the Red ML holds up then, it should reach the target area. For now I won't give any specific numbers, just a general target area.

Also, recently, I added some additional indicators to help make my trading more effective. MACD and SRSI. When the SRSI drops below 15% from the 85% level crossing the positive (green) histogram, I take that as a sell signal. Then, if the price drops below the lower ML of the red pitchfork I read that as confirmation of the sell signals given by the SRSI/MACD. If the confirmation happens then, I believe that we have peaked on the DOW for a while and I will have to re-evaluate where the DOW is going. I will continue to monitor this and see what happens.


The Q's seem to be headed for the target I had predicted $50.50 by the End of May. If the goes over $50.00 I will declare victory as shown in Figure 2.

Fig 2.

Lastly, I wanted to boost about some winning trades IGT and WDC. I bought the Jan 30 call for 9.10 on 5/8 and sold it on 5/13 for 9.10 for a 8.79% profit over a 6 day period. On WDC I bought the Jan 10 30 call on 4/21 for 8.60 and sold it on 5/14 for 10.40. That's a 20.93% return over approx 3 weeks.

I am looking for a new trade haven't found it but when I do I will make a blog entry on it.