I have been harping all along that we need to be patient before starting our buy in US markets.In this current bull run in US markets, we traded well for a gain of 700 points in Dow Jones at a trot. Check it out here.
That was when Dow had reached 17200 as predicted. At that time I had maintained that we need to be patient before initiating trade again. But what I didn't know then was that, after FOMC Meet Fed President Janet Yellen will be so dovish. As a result Dow Jones gathered another 400+ points under its belt. And we did not trade in this spectacular run up!
Yet I have been maintaining all along that you need to enter trade only after Dow cools down by 100 points. Not only that, your buying should continue till Dow Jones reaches 17100 level. Check it out in this blog post.
However I am not saying that Dow will certainly reach 17100 level in this downturn. I am only saying that this zone between 17500 and 17100 is the buying zone in Dow. From any point in this zone, Dow can swing back to 17600 and beyond.
Now what happens if Dow falls beyond 17100. That may well happen. But even in that eventuality, if you buy in zone of Dow 17500 to 17100 you will ensure you get to see 17600 in Dow again
Hence if you buy in the buying zone mentioned above, you will certainly make profit whether Dow faces headwind at 17600 or breaches 17600 for higher levels. So start buying just as Dow loses 100 points.
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