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Old 11-16-2016,
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After falling 2% at the open, the Transports turned around and pulled off a wild comeback, ending higher on the day by a half percent.

The Industrials were down less and rebounded less, falling 1.2% before recovering to post just a quarter percent loss.

But the day’s action is significant.

Our take is like this:

There’s likely more immediate upside awaiting for both the Dow and the Transports, with the latter probably the recipient of an especial blessing. We stress that Friday’s action speaks only to the immediate future – say, between a day and a week – and after that, it’s anybody’s guess as to where we’ll be heading.

And it’s for this reason that we strongly suggest you close out the trade.

The IYT PUTS are now trading for $4.80. The DIA PUTS are fetching $3.50. Your take for closing out (selling off the IYTs and buying back the DIAs) is $130 for every pair traded.

Considering the current market structure, we feel it would be a wise move.
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