Category Archives: DDM

$INDU, DDM

$INDU: Dow Jones Industrial Average

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screenshot-chartnotes-mozilla-firefoxJust took a minute to scope out a chart of the DJIA and it’s looking like we have a bullish pattern forming.

The uptrend started around March 9th and if you look forward to March 23rd the price actuall broke through the downward trend line.

There was a text book push up to resistance around 8000 then a move down to support on the previous down trend line.

From the looks of things now, it seems as though 8000 is a very strong level of resistance and has been the top of an ascending triangle.  Today we broke through and CLOSED above 8000.

Another nice move higher and it could be considered a breakout.  In that case it might be time to buy up some DDM which is the Proshares Ultra Dow 30 ETF.

DDM

DDM: Ultra Dow 30 Proshares Fund

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DDM is an ETF that tracks the Dow and is described as:

“The Ultra Dow30 seeks investment results generally equivalent to twice (200%) the performance of the Dow Jones Industrial Average Index.”

That said, there are some very positive signals on this chart (circled in red) that indicate a market rally is probably going to take place soon.

Right off the bat this is what I’m seeing:

  1. The downward channel that began early May was tested and then broken on OK volume.  I say OK because it was above average but the day before (the test) was better.
  2. Resistance @ $61.45 was also broken in this recent push forward.
  3. The 20 day EMA has been crossed.
  4. MACD had a beautiful cross a few days earlier and is now on it’s way up.  This signal is confirmed by 3 points i outlined above.

The RSI is not attractive to me.  I don’t like the slope it’s had since pivoting upwards.

I think the buying opportunity is right now.  I would buy @ the current price of $62.45, put a tight stop loss on it and use the $65.00 mark as a potential selling point.  If the price rockets through $65 then the position will need to be reevaluated.