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Markets – Macro – Stocks – Charts – Alerts

Shorting the Trannies

I’ve been watching the trannies for a long time. Not the kind of the evening variety but the chart of the transportation index ($TRAN). And yet both hold the promise of a coming surprise. While I never had the urge to know more than I needed to about the former I can’t help but get involved in a bit more probing way with the latter:

$TRAN

Oh it’s a doozy, especially in light of all the ‘stocks are cheap’ talk in a slow growth environment. Yet the desperate chase for anything return related can create excess. I’ve never shorted them before, but yesterday got me curious and a trade was triggered north of $145 as $IYT was going into volume overdrive:

IYT

It had a whiff of upside capitulation to me and today’s reversal seems to set the stage for a pullback at least. Based on the monthly chart I’m willing to give this some time to have the trannies get acquainted with Ms. Sanity. Whether she is taking a liking to trannies I don’t know, but it would be nice for them to have a chat at least:

trannies

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5 Responses »

  1. This is one heck of a post! I was laughing the whole way through on the puns and wordplay. But not to take away from the sound logic and common sense of the entire post.

    The first para is fantastic.

  2. Thx JD, glad you like fit 😉

  3. Your site looks great brother!

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