DJT trade ideas
DJT - Wave 5/ of 5 of V to cluster resistance near 10,756The Transportation index in now in wave 5/ of 5 of V and should ideally make it higher to the cluster resistance near 10,756.
It's clear that a five wave rally can be counted from the March 2009 low of 2,134 and a five wave rally can also be counted from the January 2016 low of 6,403. Once this five way rally is complete a decline towards at least 6,403 should be expected. However, my preferred count shows that this five wave rally completes an impulse of one larger degree, which calls for a corrective decline all the way down to the March 2009 low at 2,134...
It's no a question of "if", but "when" the DJT tops. So don't fall in love with Transportation and become overly bullish at this point.
DOWT ahemThe DOWT can not get much attention sometimes, but it is an all time indicator of broader market action, and a leader. We have a triple wammy set up. HS top, major trend line support, and also right at the 200 day MA, and indicators on an hourly don;t look so dramatic, but back out to the daily, and woooo nellie, lots of room to run yet (downward) if that is what happens, and finally, we could be right at the B (red circle) of a major ABC correction pattern (not shown). If that isn't enough... well there is always NK. If a bear was looking for a chart to support a major correction, this is it, because these last few days are not a correction, just a nice dip. Dips , we've seen before, a correction, like rain in a drought, you don 't believe it until you see it or hear it on your roof. My guess is we fail here, and go lower, despite the algos and govt and major corp buy back stock efforts, but that is just a guess. The real economic numbers are whispering RECESSION, even though no one wants to say it or call it that. No inflation, no real paying jobs, no spending increases, amazon doing well, but other getting crushed. A major consumer/jobs/economic change is happening here, major. How will we handle it?
DOW Transportation. Is the DOW Theory suggesting a bearish move?Is the DOW transportation index showing that the economy is spluttering?
The bearish candle on July 27?
Currently, the price level is trading inside the kumo which suggests that it has not resume its bullish move.
The leading kumo suggests that it may be twisting soon and a confirmation that a change in trend may be underway.
Watch out for level 9143
Trannies/SPX Roadmap May 2017Relative case also positive set up underway. Interesting that all reflation trades/pairs/assets are at critical reversal juncture and just waiting for a catalyst
CORRECTION IS IN THE HORIZONTransportation is a leading indicator of the economy, when the feds raise rates, they will, it is a political move, FED has to make Trump look bad, otherwise the Democrat Party cannot take back the power, no chance of winning in the future unless the economy tanks. The FED orchestrates the market and power. Hang on, the Washington machine, both sides are out of plays, now they need to try a Hail Marry to keep their power.
I want the economy to roar, I don't care who is in control. Like most of you I want to make money, try not to give it to the govt, take care of my family, enjoy life, expect some sort of security for my payment to the govt each year. Albert Einstein claimed the only intellectual pursuit worthwhile is trying to pay less to the Internal Revenue Service.
I would also like to say, I loose as many as I win, like all of us, win some loose some.
Dow Transportation: Cup & Handle Pattern Completed Now.If ever you follow the Dow Theory than the Dow Transportation is important to confirm any Dow Jones Industrial Index new all time high.
The Dow Transport allready had completed now a cup & handle pattern.
The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. What ever is need to complete this pattern is right there - NOW. Only missing now is the breakout to the upside. Expect this break out to come now and confirm with new and powerfull all time highs the Dow Jones Industrial bull run from today.
Dow Transport: Ready for new All Time HighsA Falling Wedge is a bullish continuation pattern. If this pattern might be confirmed in the next trading days than the next move will be up.
If ever you follow the Dow Theorie than a new All Time High in the Dow Transportation Index will confirm any new Allt Time High in the Dow Jones Industrial Index.
An if you see in this minutes how the Dow is running than you might see that it´s still only a matter or "when" the Dow jumps about 20k and not "if".
DJT: Falling Wedge - Another Set UpThose who follow this trading ideas have now net gains about more than 1.000 Points in the DJIA, the German DAX or the Italian FTSE/Mib (more than 3.000). So what´s next?
If you watch one by one the following trading ideas and this one as well than you might see similar pattern in diffrent markets.
So watch closely all this pattern if they might confirm next week another leg up.
If you see that stockmarket prices might go up straight again and you see any kind of accelleration than start to sell into this rally. After such a steep winning streak stockmarkets sometimes looking for a new direction over month. What i will do probably is to step to sideline and focus on very short term based trades only means for a few minutes or few hours or at least maybe a few days only.
If ever you follow this trading ideas you have still a huge gain in your profits. If stockmarkets go up by next week than use trailling stops to proctect your money. Do not stay any day longer in this market without any stop or any hedge.
Dow Transportations: Intraday ViewDow Transportations are trading nicely to the upside, with price trading in the middle of a big red third leg, specifically in blue wave (iv) of three. As we can see the index recently completed an extend wave in the previous wave (iii) at the 9491 level from where price started to decline. This decline we now see as part of a minimum three wave correction that could unfold in the current wave (iv). The ideal support for this wave (iv) could be around the 38.2- 61.8 Fibonacci ratio, from where more upside may follow.
dowt thoughtsWhat do smiley faces equal in a bottom indicator? But the 5 waves are very similar. I don't really know, just saw it, posting it.
DOWT leads the wayindicators saying transports heading lower. Consolidation pattern and time may be over, time to move. spx500 will follow. Oil dragging everything with it, as dollar gains yet again.
Dow transportation index- Will inverse H&S breakout matter?
On the weekly chart, the index has retaken rising trend line last week, but has failed to pierce through slanting inverse head and shoulder neckline level.
Even if the breakout happens this week, the question is will it matter? I would not give much importance to the formation…simply because inverse head and shoulder pattern is a reversal pattern, which needs to occur at the bottom of the trend and not around the top as can be seen now.
The real bullish break would a weekly close above the falling trend line (red). On the lower side, a break below rising trend line – black would suggest a re-test of right shoulder bottom of 7029.41 levels.
DOWT trending lowerWho doesn't believe the transports tell us where we are headed? Advanced rail orders from energy companies alone are down huuuuge. No coal to ship, unless your are a ship. What will a completed pipe line do to rail orders, things that make you go hmmmm. Who is really behind the blocking of that pipeline, perhaps Warren Buffet, or anyone else who bought all that rail stock a few years ago? hmmmm. Plants use fuel yes, and transport mostly people, but rail cars are the key to economic activity and future growth. All aboard the train to a recession.
Dow Transportation is lagging behindDow transportation index (on the left had side) is still trading inside a falling trend line and way below the record high. On the other hand, we have Dow 30 which is just a 100 points away from record high.
Note on both the charts, daily RSI is breaking higher from the falling trend. For Dow30 it means, fresh highs are possible. However, for Dow Transportation index, a breakout in the RSI won't help, simply because the index first needs to take out the falling trend line.
Investors should watch out for a failure at falling trend line hurdle in Dow transportation index as that would suggest a correction in Dow30 index.
Dow Transportations Diverging from IndustrialsDow theory showing divergence in industrial versus transportations
Dowt and correlations observationsSo brexit staring us in the face... DOWT, which is a leader is in a descending wedge pattern, while the artificially inflated stocks market is flat. Dowt price and its rsi is in sync, while other markets ... price is inflated far above its rsi. price and rsi have to match or at least come together for reality. the question is, will the euro gain strength from the vote, whatever they decide, and will the dollar fall further, and what will oil do? Oil is ready to drop. Not enough rigs taken off line, and no new demand, in fact demand is worse. Price can't hold here. Reality is dowt continues its descent,. and other markets follow. Its just a matter of time.
