Tuesday, August 3, 2010

8/3/2010 - DIA - THE VULCAN REPORT Review of DOW JONES ETF (DIA) as of Monday, August 02, 2010

THE VULCAN REPORT
Review of DOW JONES ETF (DIA)
as of Monday, August 02, 2010


Today's Price Action


Change    2.0300 (1.94%) prices closed higher than they opened.  with strong Bids going into the close.


     MARKET SENTIMENT
  
PulseScan Swing Vix


PulseScan:     37.14
Swing Vix:     37.84


The Market Pulse is positive since it is trading above its zero signal line.The PulseScan crossed below the Swing Vix creating a DOWN Trend Channel as of    1 period(s) ago.   
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.  


*The last signal was a Over-Bought Sell  1 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The security price has set a new 14-period high while the Swing Vix has not.  This is a bearish divergence. Since the PulseScan leads the market 3-5 days out we will wait to see if downside pressure develops.
      
  *Since the last Swing Vix signal, DOW JONES ETF's price has increased 1.94% , and has ranged from a high of 106.9900 to a low of 103.5400.


     MOMENTUM


     MARKET TREND - Currently the TREND is - The UpTrend is still entact with prices holding above trendline support at-  99.6450.


        TREND STRENGTH - WEAK - RANGE BOUND (Prices have ceased trending and have become consolidated at this time) The market has put in a short term top. This means that the bulls are liquidating long positions thus taking some profit off the table.,


TRENDLINE RETRACEMENT
The close is currently Above it's Long Term TRENDLINE RETRACEMENT. -  99.6450
The close is currently Above  it's Intermediate Term TRENDLINE RETRACEMENT. - 103.4118 
The close is currently Above  it's Short Term TRENDLINE RETRACEMENT. - 104.5267 


INTRADAY PRICE PROJECTIONS
RESISTANCE 106.7402
SUPPORT 106.1297


WEEKLY PRICE PROJECTIONS
RESISTANCE 105.9300
SUPPORT 103.5400


MONTHLY PRICE PROJECTIONS
BULL MARKET UPTREND - (12-18mo) PRICE TARGET = 138.4200
Long term Trend Line resistance is currently at - 112.5700
Long term Trend Line support is currently at -  99.6450


BULL MARKET HYPER PARABOLIC CIRCUIT BREAKERS
BUBBLE PHASE 3 - (72mo+) (TULIP CRAZE CRASH IMMANENT) PRICE TARGET = 215.9700
BUBBLE PHASE 2 - (42-60mo) (MARKET FRENZY BUYING) PRICE TARGET = 190.1200
BUBBLE PHASE I - (24-36mo) PRICE TARGET = 164.2700


VOLATILITY
On 8/2/2010, DOW JONES ETF closed   
below the upper band by 6.1%.
This combined with the steep uptrend suggests that the upward trend in prices has a good chance of continuing.  However, a short-term pull-back inside the bands is likely.


     IN PLAY - (PANDORA'S LITTLE BLACK BOX)


LONG Signals :   


Possible 2nd PulseWave Break-Out Coninuation  
WARNING - Possible Upper Volatiltiy Band BreakOut   Bullish Momentum Strengthening (Phase I).     


       LONG ENTRY- 107.0455
   Profit Target 110.9733
   Stop Loss 105.8245




SHORT Signals :  


WARNING - Inside Day / Bullish Retracement pull back from previous high (Possible Breakdown below)NO TRADE   


 SHORT POSITIONS FOR THIS SECURITY ARE NOT IN PLAY AT THIS TIME!


Risk Disclosure


General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.


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