Quote from lilduckling:
I have no idea wether YELL is over valued or not. Thats not how i trade. All i know is that today the transportation index had a bearish red candle that pierced deeply into the prior days bar. That in itself is not enough for me to short...but the $TRAN & $TRANQ index have had a huge run up in a very short time. They are extended from the 20ma on the daily charts.... a Fib. retracement to at least 38% (which would take it to the area of minor support from Nov 3 -6) is very likely after such a steep incline. But also as i look at crude oil ...its now beginning to find support here from July and most likely will have a minor bounce back up.....which in turn would take transports down. YELL has been underperforming the transports. So after todays action im short YELL. YELL also up against major suppy area on the weekly chart .
