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Be ready to adjust delta-neutral positions if we get a breakout to the upside or downside from our current range. Directional plays in this environment are likely necessary to collect enough premium to put a trade on. Since volatility is low, premium selling opportunities are less prevalent. Our current Dow range sits in the middle of 2022’s range. If we get an up move, it is possible that the price tests all-time highs. If we get a down move from here, look for price to test support around 32,000. Taking a step back and looking at price action since October of last year, it is very possible that buyers are out of steam and sellers have been taking over for the last three weeks. Technically speaking, price action currently appears to be forming a bull flag, but since that pattern is apparent, we could also be forming a topping pattern that will lead to a short-term reversal. Market volatility has been relatively low so far compared to last year. Big rallies have been sold off and any velocity to the downside is met with support. Price action bounced off this resistance level in mid-December of last year. Support exists below the current range around 32,071 and resistance exists above the current range around 25,274. Buyers and sellers have been hesitant to move out of this range in the last three weeks. The 32,645 to 34,450 range has been a comfortable range for the Dow so far in 2023. Price action remains in a breakout range from the downtrend channel in 2023. The E-Mini Dow Futures (/YM) contract is currently trading at 33,787, up 0.16% from its opening price of 2023. 1: Year-to-date price percent change for DIA, SPY, GLD, and TLT. If you want to trade options around the movements of the Dow Jones Industrial Average (DJIA), DIA is a good proxy.įig. DIA can be bought and sold in the same way that you would buy /YM, however the price of DIA is calculated differently and does not match the price of the index in the same way that the /YM futures contract will.ĭIA has options and its options markets are very liquid. This fund consists of the same components as the DJIA index. The Dow Industrials SPDR (DIA) fund is an ETF that can be traded.
