New Trade - DOW

"The blessing of the LORD brings wealth, and he adds no trouble to it."

Proverbs 10:22

I've gotten into another blessed trade, and there'll be no trouble getting profits from it.

Here's the chart for DOW:

Ideally, I should have gotten in on Friday instead of Monday - however, since I don't live in an ideal world I had issues - namely internet connection issues. This brings up a very relevant topic. Once you are trading LARGE AMOUNTS OF CAPITAL, then it would be most necessary to have at least one, if not two, wireless air cards for your computer. I would lean towards having two different air cards from two different wireless providers IN ADDITION to your normal internet connection.

This may sound insane, but I have had MULTIPLE instances where I was either in a trade that I desperately wanted out of, or wanted to get into a trade and could not because my wireless connection was going bezerk.

I personally know of a few traders that have multiple wireless services so they never get into a bad situation. The feeling of complete helplessness is not a happy experience and once you are trading large amounts of capital you could be at risk to lose major money if you can't trade properly due to something as stupid as internet connectivity.

Okay, back on the topic of this trade. So, I got in because we had 2 (actually 3) closes above the last significant high. This tells me that where the sellers USED to be (i.e. the last significant high) that they are no longer a force at that price because the buyers were able to have 2 consecutive closes above that price. Yes, the sellers are still around, however the majority are probably backing up and going to possibly defend the next "line in the sand" (i.e. resistance). We've gotta pull up a 3 year chart to find this next line of resistance. Here's the chart:

The next level of resistance is approx $36. So, I'm going to look to take profit just shy of that - around 35.75ish.

I bought a January Call Option for $3.25. My target is around $35.75, my stop is 2 levels below, around $28.80.

Since NOBODY but GOD knows what's going to happen, then we just wait and see what happens. Remember, we have the edge of probabilities in our favor, and more importantly, we've got GOD!