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Trading The Close Of The Dow Jones

Published 05/25/2015, 10:02 AM
Updated 07/09/2023, 06:31 AM

Today I want to show you a simple and profitable strategy for trading the last two hours of the Dow Jones.


This is a trade I have been using for a few years, and it has shown some great returns.


The premise of this trade is very simple and relies on one fact- the Dow will very rarely close at one of its extremes, meaning it will generally not close at its highest or lowest point of the day.

Every trading day, start monitoring the DOW at 2pm EST, meaning two hours before the close, if it is at it's highest point of the day, or very close to it simply take a PUT or SELL for the close, if it's at the lowest point of the day or in the same range you take a CALL or BUY for the close.

I will illustrate this point with a few examples taken from recent weeks.

DOW 5 Day Chart

As you can see from this 5 day chart the trend came true in every trading day, while there will be days were we are wrong this is still a very profitable trade in the long run.

I am also adding a few daily hourly expiries that will help illustrate my point.


Hourly Expiries
In conclusion, I am inviting everyone to try out this great strategy for themselves.

Latest comments

Nice Analysis. I can say that's a good strategy for a long run.However, I would like to ask if this applicable to other stocks like AAPL,GOOG,FB,GM,etc.?
I use this specifically for the DOW, however it might apply to other assets as well
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