Monday, 12 October 2009

Dow Transports at the high point of its second wave?

BOTTOM LINE: The recovery in the Dow Transports played out according to projections and expectations. If the count I follow is correct, DJT should close flat to negative today.

Below is an hourly chart of the Transportation average. Obviously, there is no point in trying to fade a rocket launch, so it is perhaps best to wait for the index to at least fall below the little consolidation zone formed on Friday of last week, about 1% below current levels.

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