Dow poised for a big drop?

[hlsdzsum76]

The Dow is up huge in the past 12 months.... There is absolutely nothing to fundamentally support this climb.... Companies continue to lay off in droves.... Anti-market pressure continues to grow with the current federal government.... The same problems that caused this depression we're in still exist!

Does anyone else think it's time to roll-the-dice on a big drop in the Dow?

If you are predicting a drop, where are you investing your 401k/IRA money besides cash?

If you are loading up on PUTS -- what sectors and why?

[HoseRojGex]

401(K) up to ~75% in cash right now. Yup, passing on a lot of opportunities these days... but I have no control.

The other ~25% is in commodities.

[hqqruvuh92]

The big unknown here is the huge amount of money flowing into the markets from stimulus funds. While the fundamentals are not good, the stock market may be the best of the bad options right now. Personally, I am heavy in stocks and keeping tight trailing stops.

[HNnrITotoi]

Personally I've been doing a lot better with my trading since I stopped speculating on what I think is going to happen, and began focusing on what I see is actually happening.

If I go by what I think is happening/is going to happen, I'd agree with you, that the markets are headed for a big drop.

However what I see happening is a massive bull run where the Dow is up 40% in a year.

So I'm riding the trend until the market makes a clear signal that things are changing (it's for each individual to determine a signal that makes sense to them).

Using tight stops and good money management my personal risk of a "big drop" is minimized and within acceptable parameters.

The money is in trading what you see rather than what you think or predict... it's way easier to trade the present than it is to predict the future. https://www.thefastlaneforum.com/community/styles/default/xenforo/clear.png

[hvpfpleb49]

couldnt agree more with you. The way I view my trading is this: right now its an uptrend until it proves its not - so much more focused on the longs and the follow thru (both intraday and swing trades) is much better long.

Dont try to guess - keep it simple and if the weekly and dailys are making higher highs then focus on the longs.

Traderfeed and Alphatrends - 2 of the best non BS trading blogs