[Xmas Special] Buying Down Jones

I have to say that I am guilty for not being very active on this blog in December... but I have and am very busy working on something very special for the end of this year and the begining of the new one so I am sure it will compensate for the inactivity. (I have been active in my trading room tough)

So, this is a Christmas special, a big pip making trade on the DOW JONES and I am going straight into it!

Ok so I am basing this on fundamentals and technicals, this is why this trade is soooo good.

I will kick it off with the FUNDAMENTAL deal behind this trade idea.

December is very well know as the most bullish friendly month of the year for US stocks. It generally closes 75% of the time HIGHER (since 1950, which is about 70 years now)

This is especially true when investors do not expect equities to rally, like they dont expect right now.

In the last 70 years the 4th quarter has been negative at the start of December (like it is now) and then rallied into the ending of the year... this happened all but 2 times making this a 90% successful setup.

I expect the SPX and the DOW to rally towards the end of this year and like I said above, both the technicals and the fundamentals + the history agree on this. If this doesn't happen then this December will lieratlly be the WORST December in the last 70 years.

My technical analysis indicates that the DOW is very ready to jump higher. Check out the daily chart:

As you can see we are trading in a strong trading range since November last year. The support level has held very, very well. - And I believe it will continue to hold.

My take profit targets are set as green levels on the chart.

This exact level has acted as a strong support on the daily chart 5 times since this trade range was formed, 6 if it holds this time around.

Since I like to keep things simple, enough with the daily chart and lets zoom into price action with the 4 hour chart.

The 4 hour chart gives me further indications to buy this one... we have 3 lows connected with a nice trend line right at the main (black) support trend line. As you can see the first TP lines up well with the side ways resistance trend line and that is exactly where my TP is, I don't want to be greedy for Christmas, but in any case the 2nd level can easily be reached too.

I've let my trading crew know about this trade long before I released this post so if you want to get this kind of info before everyone else then make sure you join my trading room!

I will be making changes to the paid section pretty soon so make sure to be around in the free room to not miss any major updates or pip making trade ideas!

Wishing you happy holidays!