Jump to content

Trade of the Week starting 11 July: short Dow Jones

Recommended Posts

In this week’s Trade of the Week we look to go short the Dow Jones Industrial Average with a stop and reverse order at 31,510 and a downside target at 30,400. We also look at last week’s trade, which was long GBP/JPY.



 Axel Rudolph | Market Analyst, London | Publication date: Monday 11 July 2022 

Last week's trade: long GBP/JPY

Hello and welcome to this week's Trade of the Week for the week starting Monday 11th July.

Now, last week's Trade of the Week was a technical trade on the British pound against the Japanese yen. Little did we know the developments surrounding the Prime Minister, Boris Johnson, and him resigning with regards to the Tory Party leadership. All of this political turmoil led to our trade being stopped out.

And last week we went long the British pound against Japanese yen at ¥163.85 with a stop-loss below the previous week's low, just below here at ¥161.55. Unfortunately, we got stopped out and then the currency pair started to rise again.

So, for those of you who haven't been stopped out on this trade, there might still be a possibility to go back in at the previous level, where our trade was made last time around. And this time, what you would need to do if you wanted to go long here is basically put a stop-loss below last week's low at ¥160.40. So that was last week's Trade of the Week.

Trade of the Week: short Dow Jones

This week's Trade of the Week is to go short the Dow Jones Industrial Average, and there are several reasons for this.

First of all, we are quite worried in Europe that today's maintenance, which will last ten days, of the Nord Stream 1 pipeline, which is the largest pipeline pumping gas into Germany, might not be reopened by Russia after the 10-day maintenance period has ended. And therefore, this could obviously negatively impact the European economy and also European stocks.

And in the US, we have the start of the second quarter (Q2) earnings season with the large American investment bank, JPMorgan , reporting second quarter earnings on Thursday. And also, all throughout the week, we have sentiment, inflation and industrial production data out of the US.

So, all of this could have a negative impact on equity markets and therefore we want to go short on the Dow Jones Industrial Average at current levels at 31,185 with a stop and reverse order just in case we are wrong.

So we would not only stop our short position out, but also go long above last week's high at 31,510. And our downside target would be the previous week's low, just above there, let's say, at 30,400.

So this week's Trade of the Week is to go short the Dow Jones Industrial Average at 31,185 with a stop and reverse order at 31,510, and a downside target at 30,400.



trade of the week.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Imagine a world where tokens are not just static assets but dynamic entities with executable scripts, thanks to ERC-5169 and TokenScript brought to life by the ingenious minds at Smart Layer. These technologies empower tokens to carry out intricate logic and front-end interactions, opening doors to endless possibilities. Trusted by over 1200 developers and 30 major brands, Smart Layer isn't just a concept; it's a proven solution embraced by industry leaders for its ability to tackle integration, privacy, and trust head-on. It's more than just a suite of technologies; it's a catalyst for the tokenized web revolution. At its core, Smart Layer introduces a paradigm shift, ushering in a trustless environment where token logic reigns supreme. Smart Tokens, the building blocks of this new era, encapsulate business logic in a blockchain-based format, enabling seamless interactions across systems and tokens. Tokenization becomes the linchpin of this transformative journey, as goods, services, and digital rights morph into programmable tokens. This not only streamlines integration but also fosters frictionless markets and empowers users in the digital realm.  As we look ahead to the next generation of the web, Smart Layer stands tall as the integration bus, connecting disparate systems and enabling limitless possibilities. It's not just about decentralized execution; it's about scalability, security, and a decentralized future where interactions are complex yet seamless. In this narrative of innovation, the Smart Layer isn't just a piece of the puzzle; it's the cornerstone of the Internet's future, a programmable service network facilitating decentralized interactions and shaping the digital landscape for generations to come. Am completely immersed with the ideology that this amazing innovation will reign supreme in this evolving industry and the tokens holders will have every reason to celebrate in the nearest future. Do you guys share the same sentiment or you think it's another over hyped project.
    • Blockchain technology has proven effective in various sectors where its use has been employed, and now businesses want to utilize its intelligence to raise user experiences and productivity. Sadly though, two major hurdles stand in their way: complex integrations, and data sharing regulations. Where tokenization promises to proffer solutions, scale and functionality limitations have halted its breakthrough; enter Smart Layer. Smart Layer promises us a new way to deliver business services that will unlock the next era of digital experiences. While current token functionality is limited by smart contracts, Smart Layer new token standard (EIP-5169) enables tokens to become Smart, and go beyond assets to deliver composable business services, thereby resolving the issue of extending token functionality. Through Smart Layer model, Web2 businesses are bound to build seamless user experiences by delivering more portable and composable services through tokenization, evading the need to build complex integrations with multiple chains. Smart Layer simply captures value with every integration and issued token, as businesses easily tokenize their experiences and services, and paves the way for seamless transition of businesses from web2 to web3. Smart Layer runs as a token-incentivised network of service nodes powered by Smart Layer token ($SLN), a token that has gained global attention thanks to its vast utilities and huge airdrop. Leading exchanges such as Bitget has also indicated interest in listing $SLN when the liquidity threshold is met. Your thoughts on this exciting project?
    • As blockchain technology and cryptocurrency adoption continues to surge, a lot of newbies seems to get discouraged due to the complexities involved in navigating through this evolving industry hence the reason why devs are constantly looking for ways to bring innovation that could ease the understandings of people embracing this industry. Thankfully IQ came through with a brilliant innovation where blockchain and cryptocurrency knowledge thrive. There, you'll find a wealth of wikis covering everything you need to know about the crypto world. It's not just an encyclopedia; it's a tool to empower you and shape the future of blockchain. Interestingly they don't rely solely on human effort. Their partnership with artificial intelligence, including OpenAI's GPT-4, helps scale content and make it more accessible. They're all about sharing knowledge in an easy, intuitive way. At the heart of their ecosystem is IQ.wiki, a hub for the curious, the seekers, and the scholars of blockchain. It's not just a source of information; it's a community united in the quest for understanding and growth. And powering it all is the IQ token, a symbol of commitment to a smarter future. More than just a cryptocurrency, it bridges the gap between artificial intelligence and blockchain, driving towards decentralization and empowerment. With a staggering 1173% up from the previous ATL, the tokens continues to get attention of both traders and investors alike and with many more CEXs now listing it on their platform, I think this AI token could follow the pattern of other top AI projects like TAO and AGIX or even surpass them. What are your thoughts
  • Create New...