iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

Keeping an Eye on the Trannies

This weekly chart of [[IYT]], the ETF that tracks the Dow Jones Transports, looks very toppy. Specifically, the railroad tracks that have formed (Isn’t that what W. O’Neil called them?)  through April, May, and June show a great deal of churning and volatility, with little progress made.

I made the mistake of including the 50 and 200 week average rather than my usual 10 and 40 week averages. I’m not fixing the chart, so just ignore the moving averages on the weekly period.

The daily chart shows a break of the trend and the 50 day average. There have been several quiet inside days which have consolidated just above support and beneath the 50 day average. I may take a small short position here with a tight stop above the 50 day. I believe there is probably 7 points of downside should that support break. Should oil break, I imagine IYT will want to sprint to new highs, so caution is advised.

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5 comments

  1. JakeGint

    What’s wrong? Seems to be in perfect order here.

    You don’t think Fly busts Jeremy’s balls enough, you gotta pile on?

    ______

    BTW — howabout putting the symbol (for IYT for ex.) in the text with the brackets so we can glance and see how that shit performed today? Lazy blogging practices will not be tolerated…

    Watch the Cubes tomorrow… I think Calvin may finally get his wish.

    _

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  2. Woodshedder

    Jake, slow down man. The IYT, in brackets as requested, is in the first line of the post.

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  3. CubsRock

    Looks like long legged doji. Too bad I sold my puts Wednesday, got lucky catching the top though.

    What is Calvins wish for the Q’s?

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  4. BOOMER

    Shed, you and your boys should start reading this as to state of the music biz.

    http://www.lefsetz.com/wordpress/

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  5. Jakegint

    Cubs, Calvin’s wish for the Cubes is that they die via cinderblock-ankle ties whilst “swimming” in the East River.

    Stapled to CRM.

    __

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