Transports Cycle Turn Nears
The FED has stated that OCT 2014 will be the end of the bond buying. The markets will price this in months before. The FED has been fueling this rally, like steam engines, no fuel means no stream!
A cycle that has worked well over many years is once again confirming the Dow Jones Transports is due to react at current price levels. The word 'react' is used instead of 'correction' as price may go either sideways or down. Price can correct with time as well as price. In short this is not the best time to expand your portfolio, in the months ahead raising cash maybe the better idea, after all Sept to Oct is known as the seasonally bearish time for equity markets.
Please note the Golden Ratio is calculated based on the BASE PATTERN of the rally. The base pattern is the energy for the rally. The Dow Jones Transports is now at 1.618 high off the base pattern width. In short, lots of GREEN on the traders screen that can be turn into CASH at any time.
"It is not as important to buy as cheap as possible as it is to buy at the right time."
- Jesse Livermore
"The stock market is filled with individuals who know the price of everything, but the value of nothing"
- Philip Fisher
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