My second Finlogix analysis goes to the Dow Jones Industrial Average (DJIA or DJ30 or simply Dow).

The Dow is the second largest US stock market that includes 30 of the largest and most influential companies.

These are the blue chip companies like Apple (AAPL), McDonald's (MCD), Microsoft, (MSFT), Walmar (WMT), Walt Disney (DIS) and more.

I have not written for DJ30 before so this going to be my first analysis.

There will be 7 major economic data out this week that will give high impact on the US Dollar. Pretty heavy week for the markets.

Assessing DJ30’s high timeframe candles:

Weekly Candle: Previous close is a Long-Legged Red Doji current is developing a Green Hammer

Daily Candle: Previous close is a Green Long Upper Shadow current is developing a Small Doji

Crazy charts to be honest. Very, very bullish on the yearly and monthly candles. Although the current weekly and daily candles are still low in volume, it’s too early to call for a correction.

Take note that I mentioned earlier that there will be 7 major US economic reports data out this week and they are inflation barometers. Whatever the outcome will surely give volatility. Keep an eye on them.

In trading perspective, new price discoveries have been obtained after the 39K level have been broken last week and looks like this has yet to stop!

In my opinion, it will be very risky to both buy or sell at current levels. Risky price discoveries to the upside but we can assume anytime the market can fall like we’ve seen in the past.

Based on previous price actions, everytime that the DJ30 makes new all-time-highs, it pulls back mildly to heavily corrections, re-gathers strength and makes new record highs again.

The question now is when and where is the top of the current cycle.

My plan is to observe if there’s tradable sell setup. I’m looking towards the 39500-40000 range. Definitely wait at least on the mid 39500. There can be more risky price discoveries yes but still shortable.

The current corrective structures in the uptrend give the market push up moves so take profit at immediate pullbacks.

Technicals won’t work on the Dow, needs strong macroeconmic events like 2007-2008 GFC and Covid pandemic.

Anyways, here’s my short trade entries:

However, be mindful of the risks involve in shorting DJ30.

DJ30 Intraday Analysis and Trading Plan For February 26, 2024

Feb 26 2024

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