Uncle Billy: Breakfast is served, lunch is served, dinner is-
George Bailey: No, no, no. Anchor chains, plane motors, and train whistles.
--It's a Wonderful Life
Have been eyeing the lagging performance of the trannies versus the Dow. What we have here is a classic technical 'nonconfirmation.'
In classic Dow Theory, you want the industrials and the transports to move in synch. Currently, the industrials are marking highs for the move while the transports remain mid-range. The industrials are well above their 50 and 200 day moving averages while the transports are struggling to remain above theirs.
Maybe the trannies will soon play ketchup. Or maybe the lagging trannies are a BRF (Big Red Flag).
position in SPX
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The close relationship between railroad expansion and the general development and prosperity of the country is nowhere brought more distinctly into relief than in connection with the construction of the Pacific railroads.
~John Moody
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