IYT & DJ-20 (Transports)

I DID NOT add to this one today, but I think overall we could have and the position would be fine even with a false breakout. I do have a put position open and that influenced my decision a bit as there's already exposure.

The three things that stand out here is how ready all of the charts are, how strong confirmation is between IYT and DJ-20 )(both Transports) and that "general tone today", as you can see I'm not cherry-picking any stocks, I'm just showing you what we were looking at today and it wasn't based on today's tone, it was based on the overall position.

 There's a very strong ascending triangle here which according to technical analysis is a consolidation/continuation pattern so technical traders will be looking for a breakout to the upside where there is another resistance zone that "could" be tagged.

The reason I think some patience makes sense here is the overall timing, I think we are really close, but may be have a day or two more several positions clearly look like we have a bit more time (I originally thought last night it would be best to be filled out by Wednesday or thereabouts). Another reason is it's just fact that with a pattern like this and the distribution signals, about 4 of 5 times we see a false breakout so if I look at the position from a perspective that is not rushed, not emotional, this looks like a perfect trade to stalk and let it come right to us.

Here are the IYT and DJ-20 signals showing IYT is clearly ready and also the shorter term signals show the tone of today, again not cherry picked at all.

 DJ-20 shows the tone of the sharpness of the downside 3C move.

IYT 3 mins shows a respectable divergence to the left and an even more desperate looking one today.

 DJ-20 5 min shows a negative divergence over 2.5 days and one simply today, very sharp.

 IYT 10 min (Note all the timeframes are falling or fallen in to place) again shows a strong and even stronger negative and on a 10 min chart today.

DJ-20 30 min with accumulation and a VERY sharp leading negative divergence, playing out the 4 stages so far nearly perfectly (accumulation, markup, distribution and next, decline).

IYT 60 min, this is a long and strong timeframe, the divergence is very respectable, I'd say any break above the ascending triangle and you have what I'd literally call a "Market Gift".