Dow Jones Industrial (DIA)

May 12, 2021Trade Ideas

Markets are a mess.

After topping out at 35,901, the Dow plummeted to 33,836 so far. From here, unless it can hold support at 33,836, it could test 33,500. All thanks to inflationary threats.

“Inflation in April accelerated at its fastest pace in more than 12 years as the U.S. economic recovery kicked into gear and energy prices jumped higher, the Labor Department,” according to CNBC. CPI was up 4.2% year over year. Month over month, CPI was up 0.8%, as compared to estimates for 0.2%.

With that investors are panicking, selling just about everything.

Again, unless the Dow can hold support at 33,836, we could see the index fall even more. One way to potentially profit from downside is with the DIA May 21, 2021 338 puts.


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