DIA DOW ETF Short

2023년 12월 7일

DIA tracking the DOW widely in an ETF format on the two hour chart had a 7% rise in the

past month which was widely followed in the investment media. I believe that it was a bull

trap. In the past week price action has been sideways while the Stochastic RSI shows

bearish divergence as does the zero lag MACD. Tradign Volumes has fallen off since

burst of buying volume in mid and late November which pushed the price up 7%.

In the past week, relative volatility has fallen off in general and now negative volatility

exceeds positive. I believe that this is a top for the time being. A short position will be

taken of 10 shares with a stop above the top at 363 The target is 342 just above the POC

line, where high liquidity and volatility will return as long positions, would pile back in there

and get a bounce or even a squeeze. This would be about a reward of 8 for a risk of 2, which

seems reasonable. I will however take a 1/3 partial at 350 where the Fibonacci retracement

comes into play. The SDOW ETF would be another way to play this idea.