Trade Idea (Longer Term Position Trade) IYT / Transports

Instead of the normal Daily Wrap tonight, I'm going to try to give you some assets that look close and approximate price areas.

However last week (Friday) I said I'd open a partial position or add-to position in Transports (DJ-20) IYT on just about any strength from where we closed last week. We have a +1.2% day up today and while I suspect transports can add to that with market participation and backing, I still have no problem adding to the IYT partial short opened in July.

As far as completing it (this will bring it up to about 3/4's from about 1/2 size), I'll be looking for some daily candlesticks, some more 3C signals and most importantly the signal the market has either put in the head fake move and it about to roll over or convincing enough evidence that the market doesn't have the ability to get this head fake move expected this week, off the ground and rather is likely to just roll over.

The update and charts from Friday afternoon, Trade Idea / Set-up: Transports  are still relevant so I'll just update some of the shorter term ones that are a bit different today. As far as a head fake target area, we are in to it today, that doesn't mean we are at the end of it, but this is more than enough for me to add to the position.

Waiting on the right entry last time we entered back in July allowed me to hold this with very little draw-down, as of today only -1.09% which I could have booked as gains at the bottom before the August rally as we saw that coming nearly a week in advance, but once again this is a longer term position trade, not a trading position.

Here's the minimum head fake move I was looking for that we've hit today.

For the longer term charts and why I like IYT/Transports short, see Friday's post linked above as it has more charts.

Intraday I see resistance and I'm interested in adding at this point.

The 1 min intraday shows the positive Friday afternoon and a leading negative today so this is worth a partial position or add to for me, what the broad market does will determine when/where I fill out the last 25% of the position.