As the trading range in the 500 index seems to be the hot topic of late, Rails and Trucking are heating up and close to the highs for the year. Both have created “bullish ascending triangle” patterns.
Ascending triangle patterns break to the upside around 65% of the time. An upside breakout doesn’t guarantee the economy is on the road to a recovery, yet it is a good sign that some positive things are taking place.
Suggested to buy Emerging Markets (see this Early Bird post) due to an upside breakout last week (9/13), reflecting global strength. EEM continues to move higher.
High yield mutual funds cleared positive hurdles (see post), which often reflects strength in weaker companies and more often than not, suggests higher equity prices are to come!
Many lagging fundamental reports may look weak, yet if you focus in on price and pattern behavior, some positive events are taking place. Money CAN and IS being made, using these tools!!!