Dow testing 1999 highs

Posted by Chris Kimble on 01/18/2011 at 3:29 pm; This entry is filed under Dow Jones.

 

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A few viewers ask what the long-term chart of the Dow looks like.  Currently the Dow is testing a level that was key back in 1999 and 2008 as well.

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4 Comments

  1. Nemo January 18th, 2011 at 5:25 pm

    What are the odds that 2000 represents a left shoulder, 2007 a head, and 2011 a right shoulder?

  2. WarrenZevon January 19th, 2011 at 8:25 am

    Chris,

    Do you actually use Trailing Stops?
    How would you calculate them at these levels for various issues?
    (Do you use some formula based on ATR? I would love to know what you advise.)

    Thanks!

  3. Chris Kimble January 19th, 2011 at 8:55 am

    Warren… Use trailing stops? Unless a support line becomes a hard stop, establishing a certain price point, Yes I do use trailing stops. One is ALWAYS in place. I don’t mind being wrong, I do mind being wrong for very long! Most platforms allow trailing stops, based upon a certain percentage you personally establish.

  4. Chris Kimble January 19th, 2011 at 8:58 am

    Nemo….Great question….anything is possible, yet not an ideal pattern. Per the H&S pattern being at hand, you want the right and left shoulder to be about the same distance in time from the head. Would be odd to see the left shoulder 7 years from the head and the right shoulder around half that distance in 4 years.