Here are a couple more scenarios that could unfold in the near future.
#1 The Dow could fall to it's last reversal level, which was 17888.28 and the Transportations could fall to 8018.55 before reversing course and heading higher again.
#2 The Transportations could make new all time highs, which would then signal the continuation of the bull market we're already in.
#3 The Dow could continue rising while the transportations stall out just shy of making new all time highs. The higher the Dow climbs, the harder it will fall in this scenario. We are looking at a potential 17% decline in the Dow if the Transportations don't make a new all time high soon. That number gets bigger the longer the Dow climbs while the transports stay stalled out. Getting in near the bottom of that kind of decline would be awesome, because the primary trend is still UP. If the Dow climbs much higher, I will be looking at profit taking and perhaps even shorting the markets. We'll see.
The Dow Transportations will make new all time highs!
According to Dow Theory, now is the time to buy into the large cap indexes. For this, I will be purchasing units of
TD US index - I
Another good option if you have a larger chunk to invest with is the
iShares core S&P 500 ETF
Happy investing :)
