If you have a look at the DJTA chart below, we have basically be trading within a range for the last few months ( 87 - 93 ) and things have just been bouncing in a rectangle range, while the market was skidding higher. As you can see on the chart I have circled the DJTA sold off back down to its short term support levels, and as it sold off, and the sell off volume on THURS & FRI was quite significant.
The price also poked its head just below the significant levels of support too, by the close on FRIDAY. So it means the DJTA is warning us a bit here.
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How would you differentiate the drop in the DJTA from a reduction of bulk travel due to less coal demand then actual economic weakness.
ReplyDeleteMany industries are using nat gas instead of coal. This is why the railroads dropped. The higher price of oil also helps keep a lid on this sector. Do you think it may be economic weakness?
economic weakness mixed with low index ratios in the sectors you mentioned.
ReplyDeleteI am thinking crude will go higher too soon, and that is a good indicator on transports as prices go up, trasports fueling costs go up and they receive less profits during these times. So oil is a good indicator on how the economy is really doing!