DOWJONES (US30) - BUY - 19th November 2021




DOWJONES (US30) - BUY - 19th November 2021 (Closed)


Good morning team,

The US Stock market is moving in a risk-on sentiment with the SP500 and NASDAQ trading in record-high territory. However, the DOW JONES is lagging behind the rest of the market. We are now expecting the Dow Jones to catch up over the next couple of trading sessions. Chicago FED President, Evans, says he is not expecting a rate hike until 2023, downplaying rate hike fears. He still expects no change to the taper timeline and expects bong tapering to complete mid-2022. This news has potentially given the US stock market something to cheer about along with the latest infrastructure bill. Also, keep in mind, November-December is generally positive for the stock market due to the “Santa Clause Rally”.

US Stock Market Correlation

Corrective Structures – ABC

A corrective phase in a market pullback is generally made up of three sub-waves labelled ABC. The corrective structure provides an opportunity to buy into the market when it is in a bullish trend.

DJI 4 Hour Chart

Trade Setup: BUY US30 – market execution, current price 35,885, stop loss 35,600 and take profit 36,550 +

Stop loss: 285 pips

Take profit: 665 + pips

Focus markets contract sizing:

1 contract = $10 USD per pip

0.5 contract = $5 USD per pip

0.1 contract = $1 USD per pip

Trade Setup
BUY - Market Execution

Entry
35,885

Take Profit
OPEN (Initial target 36,550)

Stop Loss
35,600