Right after I wrapped up yesterday's video making the case for a broad based selloff in US equities, I had realized that I left out one of the sectors that I had intention to highlight as one of the more bearish sectors that was setting up for a very likely trend reversal (correction), the transportation sector. IYT is the transportation ETF and of course, the shipping sector is a sub-sector of the transportation industry (along with trucking, railroads, airlines, etc..)
I've made my thoughts quite clear as to my expectation for a correction as well as personally closing out a lot of long positions & adding short exposure over the last week although there are still quite a few Active Long Trade ideas listed on the site. As always, it is up to each trader/investor to decide whether or not to use the maximum suggested stops on those trade or their own stops, assuming that they taken a position. Unless I see something very compelling on a particular trade idea that causes me to pull (close) the trade early, I'll usually leave the Active Trades as is, regardless of my market bias, until either the final target or maximum stop is hit. I do so because there have been many times where my market bias has either been wrong OR was correct, yet the same bullish (or bearish) technical reasons for posting a particular trade idea plays out for a successful trade, even if that trade goes against the grain of the broad market or particular sector to which belongs. With that being said, the suggested stop for the SEA Active Long Trade remains 11.90 for now although that level is likely to have been taken out by the time most read this, especially in light of the recent breakdown in IYT.