Down trending market are not only good trading for shorts. They are also great for counter trend rallies. You tend to get a solid rally once the top reversal has been confirmed like it is on the Dow Jones. We have a double bottom of the daily chart here so we should expect to get the rally that I have been looking for. It needs to get above the kijun sen and then when it tops out it should drop through the support on the way down. This is a good reason for using call options. Should the market suddenly go against you to the downside and break support, all you can lose at most is the premium you paid for the option. Watching the oil price and bonds will be the key this week.
DJIA daily
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