If you’re like any investor your looking for good ideas to help gain profits from your trades, Today we look at the Dow Jones ($INDU) to see where our macro trend will be heading and where you should position yourself accordingly. In the chart below you can see the the Dow failed to break the previous high of 13,250 which is not very bullish. That said it is not that bearish either. Our next move is going to be lower to re-test support at the 12,750 level and hopefully the bulls can reload on their positions and gain some steam for the next run up.
Typically in an “election year” US equities tend to run up and into the election, this is the trend we are seeing now in the Down Jones and SP500. You can also see the ground work for a move down as defensive names like Kraft (KFT) move higher to 52 week highs. That and the combination with the VIX moving up two dollars in the past week it’s plain to see that a move down is imminent.
Look to tighten up your stops and for you day traders try out a short to see if you can scalp a buck. there’s no shortage of ideas to make profits, just pull the trigger and have your stops in to protect yourself.