Trade 2 Short Dow Jones Industrial
I have been looking to sell the US and European stock markets since last summer, I have had very little chance to do it. The price action since the FOMC announcement yesterday gives credence to my view that a correction is playing out, probably of minor degree with it likely that new highs will be achieved however I do believe that the entire bull market is in its final stages and will be looking to sell the markets aggressively when the possibility arrives.
Technicals: technicals here are quite clear, if you agree that the wave pattern is corrective then a break of trend line is a clear trade trigger, falling RSI, Momentum and Stochastics help the bearish call and the break below my ema cluster is an important part of my trading plan.
Fundamentals: The rise on yesterdays FOMC makes little sense, the FOMC did exactly as expected and did not change their projections. Rate rises are rarely good for stocks and if the FED are now in regular rate hike mode stocks will find it harder to make headway. When the FED start to seriously discuss reducing their balance sheet it is likley to have a significant effect on stocks. Finally I do not buy the Trump rally, I can see no evidence yet of the new administrations ability to deliver on its promises nor i am I clear exactly what those promises are.
Picture attached, comments appreciated