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!!!
Would you use IYT to trade these or the scenario?
I used to work in the transportation industry. Ocean freight, container ships. Summer, early fall is the highpoint for imports from the Far East. Back to school followed by Christmas. A few years ago Walmart shipped 250,000 containers in Sept and Oct alone. I recently read that importers shipped Christmas goods early this year. Don’t remember why. These imports arrive at Los Angeles/Long Beach ports and then alot of them move inland and even to the East Coast via rail and truck. Could this be a seasonal thing?