This is a VERY nice sell pattern on the ETF, JETS.
I went into some of the holdings and this is one that will be very interesting to watch. Sometimes, the ETF of a sector will show a PATTERN and then all the stocks under that ETF will show the same sort of pattern … we develop a nice roadmap.
In this case – the lower weighted are actually showing some bullish signs and the heavier weighted are showing some bearish signs.
It’s a mixed bag …
IF my count is correct on FRONTIER HOLDINGS this stock might be ready to run … believe it or not.
Trade what you SEE and not what you BELIEVE. Work in progress for all of us …
Note, this is a VERY nice resistance are below on UAL. However, we must be cautious of the BIG CANDLE that is pushing prices into this level. That is when we step aside and look to see what the PATTERN level will or won’t do …
The reason I’m interested in the ‘transportation’ sector is because of this BIG ABCD on the DJ Transportation Index. Is this BIG MONTHLY PATTERN going to fail …?
In order to see ‘how’ the JETS are doing from a relative strength comparison to the entire DJ transportation index – I’ve plotted JETS/TRANSPORTATION. Interestingly, we are right at an ABCD on the ratio. If this SELL PATTERN fails then, it might be time (and I’m having a REALLY tough time typing this …) to BUY the airlines?
Man, I might be in an alternate reality … look for a DEFINITIVE CLOSE above the ratio SELL PATTERN before jumping into this one …
