DOW

Well, I'm not sure about IG's clients but IMHO there are some warning signs that a correction is due. I'm not saying that the top is in for now but take a look at yesterday's candle on the Dow:



dl.dropboxusercontent.com/u/20815047/FTS...Dowdaily25_11_13.png

It's only a single candle but it looks like a gap up, almost a shooting star, and look where that trendline comes from:



dl.dropboxusercontent.com/u/20815047/FTS...owweekly25_11_13.png

There may still be a Christmas rally but be wary about adding to longs IMHO.

Some thing interesting..
I was going through IG and found that 82% of there clients who have positions on the Dow are Short...lol....poor sods...why would anyone be short ?? Obviously they don't use charts...
And 52% of the clients who have positions on the ftse100 are long..

This back tested the channel yesterday ,almost perfectly.
Im kinda sad as had bigger position taken out due to stoploss but at the same time managed to buy new positions at a lower price thou not as many as i had initially.
We dont want the dow to finish below 15860 as that could signal a bull trap.
im hoping that it moves higher from hear...




dl.dropboxusercontent.com/u/4899609/dow21stnov.png

Heres a 1 hour chart of the dow..
The sideways move dont look so bad on this time frame.Theres a flag formation on this and look at how the top of the flag is acting like a resistance. Perfect.

Hourly chart


dl.dropboxusercontent.com/u/4899609/dowhour20thnov.png



daily chart


dl.dropboxusercontent.com/u/4899609/dow20thnov1.png

The daily has currently 3 doji ..Indecision...Its waiting for some news event to propel this further hopefully and not down move

Remo,

Many thanks for your replies.

Perhaps I am doing it wrong. But to keep losses small (2% e.g.) I only go £1 per point)

But yes, profits are small, losses are small.

This is why I stopped trading for a long while, its so time consuming and when you add up all the profits, and take off losses (although small), you begin to wonder.

I have been looking again recently to trade more (after training cocker spaniel

Perhaps emotions are more severe when trading smaller amounts? Always chasing the profit??

if your itching to get back in then emotions have taken control...Not a good thing..
The dow is unforgiving so careful...