Last night I wrote that the Dow futures had popped above an upper trend line which had been resistance over the past 3 weeks. Take these three points, the 5/2/11 high at 12873, the 5/11/11 high at 12744, and the 5/13/11 high at 12713.. Draw the trend line.
Yesterday’s settlement was well above this trend line.
I wrote yesterday that the risk/reward looked sketchy. Sitting 350 points off the highs, buying a dip looking for a run back up for 350 points, was not that good of a risk/ reward.
I cautioned to make sure you used a sell stop if you bought yesterday. […]