We mentioned on Tuesday that the Dow Jones Transport Index (DJT) is only 4% away from a double top. Double tops are rarely favorable for bulls. Additionally, the DJT is showing a very discernable "V" from 5,500 in Aug '07, to 4,000 in Jan '08, to 5300 today.
Major Indexes almost never recover in "Vs". That's why we sold many of the holdings in our Aggressive Portfolio, taking a small loss on some positions. Our readers would be wise to monitor the DJT Index over the next few days. We feel this is very time sensitive tradable information.
The Psychology of the Call team.