Here is a plot of the DJI Dow Jones Industrial Average together with a concept I call "Key Earnings Levels" which plots the sum total of the prices where the stocks in the Dow reported their earnings. It has been a very useful tool to define support and resistance in this sideways, choppy market that has led to low risk entries several times this year.
We discuss these setups and more at a chat room here at TradingView called, appropriately, "KEY HIDDEN LEVELS". It's hidden from most people's view, but not us.
You can see how this is an old resistance area from when the Dow elements reported earnings back from mid-January to mid-February. You can also see how the market held support at the level where companies reported earnings back in Mid-October to Mid-November last year.
Think of the "Earnings Level" as the "tug of war standoff" level between bulls and bears on earnings reporting day and you can see how it becomes an important level when it is revisited at a later date.
This is a good place to exit longs and to cut back on positions you aren't confident in.
If the DJI holds above the $25,713 level, it could build on these gains and likely hit a new high. With such extreme bearish sentiment around, I don't expect much downside risk other than short term leveraged players getting stopped out on sharp overnight moves.
All the best,
Tim West 8/20/2018 11:28AM EST
註釋
Now that NKE has reported earnings for the 2nd quarter, I can complete the DJIA earnings level for the 2nd quarter in a day or two. NKE is down after reporting revenues, earnings and projections for the next quarter. 9/25/2018 7:37PM EST
註釋
The DJI Key Earnings Level with NKE's earnings from the 2nd quarter is $23,375 and the Dow's fall from the peak has merely brought it back to the previous earnings levels of the 30 components and is SUPPORT here.
It is far more logical to understand the market from this perspective and you wont have to listen to the non-sensical things that people say on TV about moving averages, divergences, etc.
Tim 11:20AM EST October 22, 2018
註釋
註釋
Keep in mind we have started a brand new earnings season and will be updating this over the course of the next month. October 15-November 15 is the main time window for stocks in the Dow Jones Industrials to report earnings.