Transports are just one of the indexes which has broken out although
it certain indicates strength in shipping goods. An index which on which I put
more weight is the XBD (Securities Broker-Dealer index). Historically, the XBD
has often (but not always) given some timely advance warning of impending
problems in the stock market.
That said, there is something else which I am seeing in some key indexes
which is a strong move right through the 162% retracement of the prior decline.
The XBD (monthly chart attached) is one index which has done this. While such a
move gives the appearance of strength, it also sets off "blow-off" warning
bells.
Earl
----- Original Message -----
Sent: Sunday, December 04, 2005 8:33
AM
Subject: Re: [RT] Trade Management
Earl
Have you looked at the DOW Transports
making highs ? what's the signal relevance ? Industrials higher ?
mano