With the Dow Jones Transportation Average hitting our upside targets last month, it's become a wait and see game.
Are consolidations resolving higher, like they were before? Or are they resolving lower?
Based on the overwhelming amount of evidence, the bet we want to make as that Transports resolve lower, and join some of the other areas that have already been under pressure for months, like Tech and Small-caps.
When going through the components of this index, there were 6 names in particular that presented the best risk vs reward opportunities on the short side.
The first one Southwest Airlines. This looks like a top to me. How I learned it was to buy the smiley faces and sell the frowny faces.
If we're below 59, we want to be short $LUV with a target near 48.50, which represents all that former resistance last year.
The rest of the short ideas are all coming from the Dow Jones Transportation Average.
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