Transports were the worst performing average last week (Dow 20). It looks like you might get a chance to get involved in a IYT (transports) short with the trade coming to you.
This is still a bit screwy on the 5 min chart which just goes to show it's pretty much market wide, but as a core or longer term short position, I have and I still do like transports a lot.
IYT 2 min chart on more of a trend basis, but take a closer look and there's a weak positive divergence, the kind I'd usually look to short in to.
The same 2 min chart and the positive divergence today (note the head fake move at the yellow arrow, again just before a transition to the downside.
There's also a positive on the 3 min chart, you can see how far the last one took transports-not too far.
The 5min chart, like the rest of the averages, just in limbo, but beyond that...
The 10 min is leading negative so whenever this 5 min chart cycle is resolved, this should be the direction in which transports starts moving again.
As for the highest probabilities and strongest charts, this is why transports are on of my favorites...
60 min IYT from the October cycle lows, note where the indicator is now and there are much worse charts than this.
This is a trade that can come to you on your terms at a better price, lower risk. If you're interested in an IYT short, I'd maybe set a few price alerts for a move higher in IYT.
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