{"id":56309,"date":"2024-10-21T08:19:56","date_gmt":"2024-10-21T06:19:56","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&p=56309"},"modified":"2024-10-21T08:19:57","modified_gmt":"2024-10-21T06:19:57","slug":"dow-jones-forecast-analysis-no-sign-of-weakness","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/dow-jones-prognose-analyse-kein-zeichen-von-schwaeche\/","title":{"rendered":"Dow Jones Forecast & Analysis: No sign of weakness"},"content":{"rendered":"

Dear trader, dear stock market friends.<\/p>\n\n\n\n

The Dow Jones is currently moving upwards as if on rails. With a gain of 0.96 %, the index reached another all-time high last week for the sixth week in a row. Since the beginning of the year, the Dow has already risen by almost 15 %. Over a 12-month period, the performance even amounts to almost 30 %.<\/p>\n\n\n\n

The bull market is therefore in full swing. The only strategy a trader or investor should pursue in such a strong trend is a trend-following approach. Even if the market has already risen so far that a correction is overdue, there is a very high risk of being \"overrun\" by the current trend if you try to go against it.<\/p>\n\n\n\n

As you can see in the weekly chart below, the Dow Jones is already in an advanced trend movement again. The further the movement progresses, the higher the probability of a correction. Jumping on the current trend movement in such a phase carries the risk of entering at an unfavorable time.<\/p>\n\n\n\n

\"Dow<\/figure>\n\n\n\n

Dow Jones Index daily chart<\/p>\n\n\n\n

There is a better probability of success and a better risk\/reward ratio if a new movement phase begins after a correction.<\/p>\n\n\n\n

Instead of waiting for a correction to open a directional trade, using an options strategy such as a cash secured put can be an interesting alternative to generate income in the meantime. This involves selling a put option, usually a few points below the current price level, which generates a premium income. If the market is trading above the strike price of the option on the expiry date, the option expires worthless and the amount of the profit corresponds to the option premium collected. If the market is quoted below the strike price, the option is automatically exercised, resulting in a long position in the underlying (in the case of equity, ETF and futures options). In this case, the sold put works in a similar way to a buy limit order, with the difference that the sale of the option generates additional income (option premium). In addition to trades at index level, this strategy is also ideal for individual shares. The majority of the 30 stocks in the Dow Jones are currently in stable upward trends. Here it is worth screening for promising chart set-ups.<\/p>\n\n\n\n

<\/a>The Travelers (TRV)<\/h2>\n\n\n\n

With a gain of 12.2 %, The Travelers was by far the strongest stock in the Dow Jones last week. After the earnings release, the stock opened at a new all-time high above the resistance area on Thursday. Such a clear breakout after earnings under very high volume is often a signal for a medium-term trend continuation. Here, too, it makes sense to wait for at least a short-term correction in order to then look for a long entry or, as described above, to sell put options (cash-secured puts) near the support area.<\/p>\n\n\n\n

\"The<\/figure>\n\n\n\n

The Travelers share (TRV) daily chart<\/p>\n\n\n\n

<\/a>McDonald's<\/h2>\n\n\n\n

After the McDonald's share performed very weakly in the first half of the year and was unable to participate in the upward trend of the broad market, the share has made a brilliant comeback in recent weeks. Without taking a breather, the rally led to a breakout above the resistance level of around USD 300. Although the share is now also overbought, it is still an interesting candidate for the watch list. In the event of a correction in the coming weeks, there could be an opportunity to go long.<\/p>\n\n\n\n

\"McDonald's<\/figure>\n\n\n\n

McDonald's share (MCD) daily chart<\/p>\n\n\n\n

<\/a>Goldman Sachs<\/h2>\n\n\n\n

Most of the US banks have published quarterly results in the last two weeks. The results as well as the price reactions were very positive in most cases and the entire sector currently has a tailwind. Goldman Sachs shares were also able to break out to a new high and are currently completing a pullback to the breakout level, which opens up the opportunity for a long trade out of the correction.<\/p>\n\n\n\n

\"Goldman<\/figure>\n\n\n\n

Goldman Sachs Share (GS) Daily Chart<\/p>\n\n\n\n

Author: Tobias Schmid<\/a>
Date: 21.10.2024<\/p>","protected":false},"excerpt":{"rendered":"

Lieber Trader, liebe B\u00f6rsenfreunde. Der Dow Jones l\u00e4uft derzeit wie auf Schienen nach oben. Mit einem Plus von 0,96 % erzielte der Index in der vergangenen Woche die sechste Woche in Folge ein erneutes Allzeithoch. Seit Jahresbeginn stieg der Dow bereits knapp 15 % an. Auf Sicht von 12 Monaten betr\u00e4gt die Performance sogar fast […]<\/p>\n","protected":false},"author":44,"featured_media":56310,"template":"","analysen-kategorie":[857,849],"class_list":["post-56309","analyse","type-analyse","status-publish","has-post-thumbnail","hentry","analysen-kategorie-dow-jones","analysen-kategorie-index"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse\/56309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/analyse"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/44"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/56310"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=56309"}],"wp:term":[{"taxonomy":"analysen-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analysen-kategorie?post=56309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}