Dow Futures Edge Higher After Week-long Slide, Where Next?
Mar 14, 2023
Dow futures are currently trading at 32,461, down 3.06% from its opening price of 2023. Dow Futures moved sideways for the first two months of the year. In the middle of February, they began taking a bearish stance.
Current price action has bounced off the low of the year, which was recorded on March 13th, 2023, at 31,740. Based on price action, it appears that this will form a short-term bottom for the Dow, as we have approached key support and appear to have found buyers.
For additional details on Dow Futures, please refer to the Dow futures January update.
The price of the Dow, at 32,461, is in a position that could easily continue lower or rebound higher. There are good reasons for market participants to continue to react to fear. There are many uncertainties that exist in the market which could push prices lower.
At the same time, we have spent the last thirty days moving lower looking for buyers. Eventually, buyers are going to take the opportunity to apply some buying pressure and push the market higher for a period of time. We appear to be entering that situation now.
Given the opportunity for both continued bearishness and a bullish rebound, it is likely that the market will continue to move sideways. It’s also possible that Dow develops a range in 2023 that it bounces between.
The collapse of SIVB, along with uncertainty surrounding interest rate hikes, is creating an environment where market participants disagree on price. These disagreements create buyers and sellers at many different levels, which increases volatility.
As premium sellers, this is useful. Selling premium requires uncertainty and current market conditions lend themselves to selling premiums and taking on some of the risk in the market. If the market does continue to move sideways and we sell premium now, we will be setup in the ideal position to collect profit on our trades.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.