DJ Transports Fulfill Cycle High
12/19/15 Weekly Re-Lay: “Stock Indices are selling off in perfect timing. 3–6 month & 6–12 month traders should have sold Indices at their early-Nov. highs and be holding these short positions…
Stock Indices are validating ongoing expectations for a peak & reversal lower in mid-Dec. 2015. That has been discussed for several months and was primarily linked to the 32–33 Week Cycle (that accurately timed highs in Sept. ’14 & late-Apr./early-May ’15) on Dec. 7–18th.
It was honed by an ongoing 25–27 day low-high-high-high-(high) Cycle Progression in the DJ Transports that projected a lower high for Dec. 15–17th. Daily cycles in other Indices and the daily trend patterns corroborated that.
The Transports began the week by spiking to a new intra-year low – confirming expected weakness – and then rebounded into Dec. 16/17th when the daily cycles turned the most negative. Along with most of the other Indices, they gave convincing outside-day/2 Close Reversal sell signals and dropped sharply into week’s end…
3–6 month & 6–12 month traders/investors should have re-entered the short side of the Indices (except NQZ) on Oct. 29/30–Nov. 6th and should …” TRADING INVOLVES SUBSTANTIAL RISK.
Stock Indices are fulfilling the mid-December ‘Transition Period’ and analysis detailed in the Oct. 2014 Stock-flation & May 2015 Stock-flation II Reports. For over a year, the refrain has been the same – ‘watch for the ‘real trouble’ to begin immediately after mid-Dec. 2015. Traders & investors should have been selling at the early-Nov. highs and should be preparing for a 2016 sell-off! TRADING INVOLVES SUBSTANTIAL RISK.