The Dow Jones Transportation Average represented by the $IYT ETF has been a strong performer throughout May and June. It broke out to new all time highs on July 3rd, resolving a multi-month range sideways.
However, over the past week of trading, we’re seeing some near-term selling pressure come through, and a break of this accelerated bullish trend line.
Markets kicked off the week of Monday, July 17th choppy and mixed finishing relatively unchanged on the day. We’re heading into prime time earnings season which means potential sector/stock catalysts (positive or negative) could be right around the corner.
Here’s a short list of some of the swing trade setups that are on my watchlist over the next few days.
Given its earnings season, double check all of the report dates that follow.
The Russell 2000 $IWM is first up as it consolidates high and tight at this 142 area that has acted as resistance since early June. Today’s close was pennies away from all time closing highs.
It’s been a sleepy past two days in the market unless you’ve been concentrated in biotech and healthcare which has been working nicely to the upside while the rest of the sectors have been pulling back into nearby support zones.
Our current portfolio positioning is light in order to avoid some of this quiet chop, but here a few setups we’re looking at into the close of the day for potential new long entries.
Canadian Pacific $CP is breaking out from this trend-line extending from the June highs. If you were to zoom out and look at a weekly/monthly chart, notice the even bigger breakout in motion over this 155 area.