Not even scared
US strikes on Iran are picking up again, but the stock market isn’t flinching. Oil may have jumped nearly 4%, yet investors are burying their heads in the sand, with Dow futures expected to open the week flat.
Will the third round of bombing carried out by the US military this weekend be the last? This morning, the markets want to believe it. But between damaged ships and intercepted missiles, the reports coming off the ground hardly invite optimism.
Between the US and Iran, tensions are boiling over, and the fragile memorandum of understanding signed by the two countries is hanging by a thread. That reality could well catch up with the indices this week.
My trading plan
After the bullish push on July 7 toward the monthly Resistance 1 failed [1], Dow futures turned lower, hitting the buy-side stop-losses placed below the 52,381-point support the very next day [2].
Despite last week’s late rebound, the short sellers still hold the upper hand; their Friday offensive managed to reach the previous day’s low [3].
Against this backdrop, I’m sticking with bearish trades, with my sights set on the buyers’ stop-losses placed below the 51,692-point support.
Happy trading!
Maxime holds two master’s degrees from the SKEMA Business School and FFBC. As founder and editor-in-chief of NewTrading.fr, he writes daily about financial trading.
Full steam ahead
Running on fumes
No miracle