There’s an old saying that you want to buy new 6-month lows within ongoing structural uptrends.
As it turns out, the Dow Jones Transportation Average just went out at new 6-month lows.
If you recall, our 6 Short ideas for the Summer were all components of the Dow Transports.
So now what?
Flip the book long Transports?
How can we know for sure if it’s in a long-term uptrend?
But if it is, the Cyclicals are where we want to look.
Is that why the US 10yr Yield is up 4 weeks in a row and 6 out of the last 7?
Is that why Wells Fargo was up almost 5% this week? Yes that wells fargo…
Today was Quad Witching so a lot of funky stuff went on this week. Just keep that in mind.
Let’s see which way they come out swinging next week.