How High Will The DJIA Go?

The Dow Jones Industrial Average is pushing to breach the 14,000 level. Most people, including myself, believe that the market will take that price level and move higher.

The bigger question many are asking is how high is the DJIA likely to go? The reality is that no one can answer the question reliably.

However, there are tools out there than can help us to make projections. What's important about doing so is that you want to establish a market expectation for yourself.

By establishing a market expectation, you can position yourself so that you are trading in concert with what you anticipate the market will do. Of course, knowing that we can't always be right, you'll have an exit plan in place to close any trade when things do not work out. Money management, right? Right.

Dow Jones Industrial Average 14,000 - View Video

Here is a video that takes a long term look at the DJIA, demonstrating how you might go about projecting a long term path for the index. Once you have an expectation of where it is headed, then you just need a method of triggering you into the market at opportune times and a method for limiting losses when a trade goes awry.

Combine those three things, and you have what can be a simple but effective trading system... This stuff ain't rocket science, after all!

Trade well.

Christopher Smith
TheOptionClub.com