Trade Recommendation: Dow Jones
I have a feeling that Dow Jones is just hitting the resistance at 21650+ and that it will not be able to climb to a new ATH. I could be wrong, but I got this weird feeling that we will see a sharp drop in the coming days.
As I enjoy to take high risks, I’ve shorted Dow Jones at 21650 with a stop loss at 21670 to 21680 and a take profit at 21567. I might move both the SL and the TP up or down 10+-points. This might be a stupid trade (and recommendation) as all signs points upwards. But I do not understand why Dow Jones would climb even higher. There are a few things that concerns me with the american markets:
- The Debt Ceiling must be raised in October or the US will come to a stand still
- The tax-reform hasn’t been introduced since Trump is trying to pass a health care bill
- The VIX (Volatility Index) is at its lowest in many years (trend reversal?)
- Gold price is stable at 1250 USD
- IMF reported that they see the US market as the most overly valued market in the world
Let me know your thoughts.