DOW

PS, I was reading about what the top guys (and I mean the really big guns in the US) do when trying to offload a (large) position at a key price level such as this.

I think it was Paul Tudor Jones who said that he places orders to close half his position (let's imagine he's long Dow currently) well inside the key price level, say 20 pts, and then places order to close his other half on the other side of the price level.

The equivalent trade here would be to have a short inside 14198 and another on the other side at, say 14218 to catch a cheeky one.

Just thought I'd throw that in.

I'm sure there will be an almighty battle at this level, not least because it's only the Dow, not the S&P500 or FTSE) which is at its all time high. S&P bulls will be trying to keep the market going long IMHO. And let's not forget that most US index traders trade the S&P not the Dow.

I doubt it will be cut and dried but I wouldn't mind if it is lol!

Yep, updata has 14198.

14198 is what I have as the all time high.
That's from metastock. Thomson Reuters so I'd expect that to be correct .
It would be nice if someone with Updata can also verify.

Remo- I am getting confusing highs for the Dow in 2007. I have got 14164 and also a mention of 14198.... Please can you confirm?

Thanks

I'm using a 40 point stop. But I must admit i was thinking of extending the stop loss just this once due to the special level.
But that will go against the way I trade so I have to stick with the 40 points stop loss.
I don't want to start to change my style of trading and second guessing every thing ....I have to stick to my own rules.
Can't be changing them as once you do it once then that could have a spiralling effect with future trades. Well for me any way as my back ground is of an addictive nature....lol
Tough decisions for this one trade.....
I'm still weighing this up....
ill stick to my 40 points stop and if it gets taken out so be it. I can always re-enter on a 123 high for a short or if it breaks out then always re-enter on a long on a proper back test.
The key to trading well against the Dow is to not over trade. Just wait for the best levels then trade them.
The first touch rule works best from a far and not close up so bear that in mind.
Enough of my rambling
I'm looking forward to the week ahead.

For the record:

The last time the Dow closed that mark was Oct. 12, 2007, when it settled at 14,093.08. It had reached its all-time record, 14,164.53, three days before that.