For almost a year, it has paid to “Trade the Range” in the Dow Jones Industrial Average.  Plant seeds of growth at the bottom of the range and Harvest gains at the top.  For aggressive investors, it has paid to take positions to score on defense at the top of the range as well.  Update of the range below..


As I shared in the chart above…Harvested positions last week  (see post here),   due to reaching this critical resistance and the position of the Dollar,  on potential support with very few bulls (see post here).

Not only is the Dow at the top of its year-long trading range, the Dow is facing 20 & 70-year resistance   (see post here) in the chart below.  Shared in the chart below that 11,000 to 11,500 should become stiff resistance.  We are there currently.


I remain of the opinion that “even though the music is playing, we don’t have to dance to EVERY TUNE!”  Translation… After harvesting,  it is fine to set back and let other people play the market, until a breakout or breakdown takes place.

As I shared in the top chart, would not suggest to take positions to score on defense at this time!  Am open to do so for sure….just too many positives taking place right now to take that risk.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past