It’s our job, whether we like it or not, to be on the lookout for risks. I know, it’s a mundane theory to think about the downside, since all we do it go up.
However, according to the Dow Theory, we should be trembling in our boots, ‘shatting in our pantaloons’ over the recent pin action in the transportation stocks.
Today’s drop is courtesy of LSTR earnings. Other stocks in the group that are washing lower include KNX, CVTI, FWRD, CSX and a bunch of other rails and the airlines.
The reason why people chimp out when the IYT drops is because the transports represent vitality, or lack thereof, of the US economy. When things are bustling, the trannies do well. When the economy is slowing, the weakness is often first cited in the transports.
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Klick bait headline. Trump axed trannies from US Army. Are they OK?
Yesirreebob, Trannies are going to nowherezville downunder fast. ‘Nuther 1.5 % down on top of their >3% grade today – and they will be down-under for the year. Seems to have woken up the bullshitters on the SPY train. A little dow-theory to plow them critters under, like in 2015.
Fun to watch the algo’s try to find some greater fool algo at times like this. The carbon units just look at each other and desperately ask God, err, Google – what is the problem.
Charles Dow would slap you silly for invoking his Theory. Confirmation is based on the primary trend, which is upward for both the industrials and the trannies. You’re looking at pin action daily fluctuations which he specifically said we should not do.
HAhahaha
Regards
Chuck Bennett
Trump should have kept the trannies in the army just to send them in the SK-NK DMZ to act as the first attack wave through the minefield.