Things just got interesting on the daily charts. The Transportations hit new all time highs, but so far the industrials aren't continuing to confirm (as of July 7, 2017).
This type of divergent move is what I am looking for as a signal to start thinking about taking profits.
But not immediately. There isn't enough data to fully support a thesis of a change in primary trend. For now, it's a hypothesis. So ... I'll need to 'hurry up and wait' to see if something big materializes. For this strategy, I will look to the weekly charts. FYI, the weekly charts are currently painting a much more rosy picture than the daily charts ...
What I'm wanting to see (well, I don't *desire* to see this, but if I do see it I'll be ready) is something like this: hundreds of points of sell off or more in the industrials and the transportations. On the way back up, the transportations make a new all time high and the industrials fail to confirm, or both fail to make new all time highs.
If this happens more than once say, in the next month or two, I'll be taking profits on just about every position in my portfolio. But if both indexes surge to new all time highs, I will not do anything at all and continue to reap the rewards of this impossibly resilient bull market.
