Dow Jones ETF DIA is trying to break weekly supply imbalances located at all time highs. Supply and demand technical analysis tell us that we expect that supply zone between 262 and 269 to be eliminated. A similar scenario has happened on Nasdaq with its weekly supply level eliminated as expected.Weekly demand around 254 gained control as expected. Longs at new demand levels in lower timeframes are possible. Longs if weekly supply level is eliminated or new lower timeframe demand imbalances are created in this attack to weekly supply.
DIA FUND DESCRIPTION
A bit more information about this fund. DIA tracks a price-weighted index of 30 large-cap US stocks, selected by the editors of the Wall Street Journal.
Despite the name recognition that comes from tracking the Dow and its own popularity, DIA is not the ideal ETF for investors who want broad-based exposure to US large-caps. The fund’s tiny portfolio, arbitrary selection, and antiquated weighting produce significant sector biases relative to the market, and cover only a fraction of the large-cap space, typically represented by hundreds of names.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and reacts strongly to those imbalances.
Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.You can use these imbalances to plan your trades in lower timeframes.
Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.There are several ways of buying stocks.
When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
For more information on how to trade Forex and stocks using supply and demand imbalances visit
0 Comments