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Elf grumblings

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#1 tommyt



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Posted 20 December 2006 - 10:37 PM

These guys are not helping the bull case:


rolling over along with mkt internals weakening more...the Mc Osc is negative and the summation topped before the last 2 dow highs...the mkt is hanging on with this December thing, but starting to lose it..holding up for 6 more trading days looks like a sharp plunge early in '07. Also, the outlook for '07 on CNBC is really quite optimistic like almost a lock to be up big for the year. I remain with my Dia/Spy shorts.

*if you subscribe to decision point.com..check out the ITBM/ITVM charts...they look bad.

Edited by tommyt, 20 December 2006 - 10:39 PM.

#2 Rogerdodger



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Posted 20 December 2006 - 11:49 PM

The radio Guru (Philsgang.com) mentions this Trans/DOW divergence almost daily.

#3 dcengr



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Posted 21 December 2006 - 12:07 AM

Dow Transports

Posted Image

Edited by dcengr, 21 December 2006 - 12:08 AM.

Qui custodiet ipsos custodes?

#4 frenchpj



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Posted 21 December 2006 - 12:28 AM

Extract from Barrons yesterday... ;) A conversation with Matt Blackman of TradingEducation.com revealed a fairly negative view on what the falling transportation sector means for the economy and to the stock market by extension. He started by citing a presentation made by Sen. Dick Lugar back in March saying that, "…the transportation sector…accounts for 60% of American oil consumption." Blackman's take was that if oil is trading in the low-$60 per barrel range now and the transportation sector, which is so dependent on energy prices, cannot make it back to its May highs when oil was $70 per barrel, then it must be saying something about the economy in 2007.
"Great things are not done by impulse, but by a series of small things brought together."

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#5 Cirrus



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Posted 21 December 2006 - 10:18 AM

It's what you would 'expect' to see. The mentality is the economy is weakening slowly and the Fed will likely cut rates soon. Therefore they are moving into the financials. The BKX and XBD have done very well lately and they're the most represented sector in the major indexes.