Now I want to be clear that this doesn’t make me any less bullish that I already am. I have just found in my experience that when everything looks wildly bullish, like it does after Friday’s action, it can pay to take a look around and see what could derail a rally. Goods need to be moved from place to place and it’s these companies within the Transports that make this happen. If these continue to under-perform it could be an underlying issue in this rally going forward.
Other than this and some short term overbought readings on some of my indicators I’m not really seeing to much in the way of “warning signs” that this breakout isn’t for real and that we’re going to head back up and challenge the April highs.
Here is a screenshot of StrategyDesk showing my watchlists for Monday. http://screencast.com/t/N2M4ZjhlYT
