Drop in Dow Industrials Perspective August 15, 2013

16 Aug

The Dow (DJI) dropped today by 225.47, or 1.47%. It is currently up 12.67% for the year. Below is a chart of the DJI on a daily basis for the year.

Consider your timeframe whenever entering a position. Below is the DJI on a weekly timeframe.

Looking at a weekly chart, no action being taken (always) is an option. Entering or adding to positions is also a consideration, as the averages have simply dropped to intermediate moving averages. An exit plan would be appropriate for any additional entries in the event the market continues down.

Also, depending upon your perspective, on both a weekly and a daily timeframe these charts suggest that the market is more likely to go down than up. Re-entering the market when the DJI returns to the slower moving average is perhaps a better bet.

Contact your broker or financial advisor for any decision you may choose to make.

God Bless The Queen!

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