Re: According to Dow Theory - Bear Market
There is a little more to Dow Theory than what you are representing here. You make no mention of confirmation for example.
The Dow price is currently moving in a consensus pivot zone- the area on and around the 200DMA and 200EMA. Price tension seeks resolution one way or the other.
One way to play this is tension (if it in fact exists) is to buy an out-of-the-money put below the current price, and an out-of-the money call above the current price.
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