ETF NAME – SPDR DOW JONES INDUSTRIAL AVERAGE ETF
TICKER – DIA
MY OPINION (JUST MY THOUGHTS, NOT ADVICE) – WILL BE GOING DOWN
STRATEGY USED – SELL A VERTICAL CALL
My Thoughts On DIA
I’m bearish on the market in general right now, and I think that DIA is due for a pullback. I wouldn’t be buying here.
You can see the DIA chart below shows that DIA is falling away from the upper Bollinger Band. It seems like it wants to return to the center.
The chart above shows that DIA hasn’t reached and overbought condition, but doesn’t look like it is headed there any time soon either.
Fibonacci Pivot Points
The DIA has pierced below R2 at 253.75, and is right now just sitting on it. This resistance level is only good for 1 more trading day, and I don’t like opening any new trades this late in the month. That’s just my opinion though. If you have another one, feel free to leave it in the comments below.
Look below, and you will see that the MACD is still bullish for now. It is slowly drifting upward.
The STOCHASTIC, on the other hand, has crossed over, giving a sell signal. Stochastic is usually an early indicator, but not a very reliable one.
If anything, I would sell a call spread. Currently, I have no position.