Shared in the chart below that the Transports looked to have created a “Bullish Head & Shoulders” pattern and that I would want to be a buyer on a neckline breakout (see post here).

CLICK ON CHART TO ENLARGE

Updated chart below…

CLICK ON CHART TO ENLARGE

Game Plan….Be a buyer of IYT/Transports with a stop at $85 due to a breakout of line (1). 

Railroads and Trucking “ascending triangle breakouts” already have taken place (see post here).  In that post I shared that the positive  action of Railroads, Trucking and High yields, made the markets look vulnerable to upside breakouts.  

Some might wonder why I would suggest say Chile (see new purchase here) over Emerging markets or Transports over say the broad market.  Nothing wrong with Emerging or the Broad markets…I am just looking for “relative strength/out performance.”   Nothing more than that…. please see “Does searching for relative strength pay off” for more on this subject.  (see post here)

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past