Big tramline breaks in the Dow

The Dow has crashed through one line of support only to run up against a stiff line of resistance, says John C Burford. Here, he sets his target for his latest trade.

The 'Barack bounce' didn't last long, did it?The Dow is down around 500 points from last Wednesday's high and has broken through support. Let's see what the picture looks like this morning.

In my Wednesday post, I noted the pick-up in volatility recently then, the market had bounced off my upper tramline once and was heading for it again. I decided to sit on my hands. But minutes after signing off, I had a terrific opportunity for a trade. So out my hands came!

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.