One of the more noteworthy developments in recent days has been the move in transport. After a strong run of outperformance in late August 2017, the iShares Transportation Average ETF (IYT) topped out in mid-October and trended steadily lower. The ETF fell 1.2 percent, bringing its 2017 gains down to just over 8 percent, trailing the S&P by almost 6 percent. Now the question is whether this is a pause that refreshes or it’s a beginning of something worse. Below is an update look at a trade in the IYT.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – iShares Transportation Average ETF (daily)
Our “U.S. Market Trading Map” painted XLP bars in red (sell). After peaking at 181.57 in mid-October, IYT rolled over. Wednesday’s massive selloff pushed the ETF below the 20-day moving average – the level that offered support in the mid-October correction. This is a bearish development because it’s indicated that more supply is coming into the market…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
Subscribe to CEM News to receive more in-depth research from Capital Essence.
P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.