6/9/08: Dow Future Trade/Market Update (Ichimoku)

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  • 6/9/08: Dow Future Trade/Market Update (Ichimoku)

 All four target levels were achieved last Friday for the Dow future trade.   The Tenkan sen on the 60 minute was never penetrated.    Depending on the type of trader, you would get out at one of the four target levels.   The trade is now ended since the fourth target level has been achieved.
Friday was a big drastic down day.    On the news, it says people were “panicking” and shouting “recession” again.   Be careful to everyone you hear.    Yes, last week was a big down week with Volume.    However, we do not listen to the emotions from the media to trade.   We look at the charts to see how people are reacting.
In order to get a long term view, we are going to examine the weekly chart of the Dow futures.     The down movement yesterday was exactly a .618  from March 21 inter-day low.     Also, notice the tenkan/kijun sen relationship is now bullish for the first time since  12/14/07 when it went bearish.   Price is also too far extended from the Tenkan Sen.   All the signs for Ichimoku show that on a weekly basis, we are consolidating with “wild” swings but as time goes on, the bears are getting weaker.
For EDUCATIONAL USE.    Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose