I last spoke about the market on the 21st and gave you level to watch in particular the Transport. Today action wasn't encouraging at all. Even if the Industrial held somewhat strong, the Transport collapsed showing sign of weakness in the economy. You'll see on the chart below that we opened right at the breaking line and closed rather low from the red line.
The level to watch on the Industrial remained unchanged.
My Action
I haven't change my position in the market. I've trimmed some profit and cut my losses last week. But I still have 50% of my portfolio exposed to the market. I'm more nervous now about the market than ever but I'm going to think with my brain and not my nerve. With Dow theory bull signal in tact and bear signal not confirmed, I can remain long. When and if that sentiment change, I will notify my reader and update you on my positions.
Art
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