Dow Transports breaks support and may be an ominous sign

Dow Jones Transportations Average; One-year daily chart – I warned of a reversal a couple weeks ago in the averages as the Trannies seemed to be leading the way. Today’s ominous red candle points to an eventual test of the 200-day sma after todays decisive 100-day sma fail

I wanted to pass along this chart for my readers to consider. Although the Biden regime announced today that it was going to examine pricing and competition in the rail and sea shipping industry, the transports were already vulnerable. They took it on the chin today; taking out daily technical support around the 100-day sma. It seems that the 200-day sma may be next.

I think the index will trend around the 100-day sma for several days before making its next move. That move will likely trend lower.

If the 10-year UST yield is a predictive indicator, we may be in for some consolidation on the averages. Indeed, the talk on the street regarding the movement in the yield curve is one of confusion. But, I have to believe that all this extra debt that has been generated to goose GDP growth is in the process of being digested. Of course, the average worker will have to eventually eat it as they don’t have the assets to offset the debt millstone.

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7 thoughts on “Dow Transports breaks support and may be an ominous sign

  1. I’m beginning to notice that the inflation and supply chain disruptions are manufactured. Case in point: an owner of a large mechanical contracting company told me today that they are able to buy most specialized material but are short on certain basic screws and bolts. The rationale is that the steel companies are focusing on higher margin product. I call BS. That’s not how these supply chains work and the manufacturers are aware of basic sequencing of construction.

    There is something else going on here. Not sure why TPTB would be doing that but if this problem is manufactured, I would bet that it continues. I really wouldn’t be surprised by $8 gas soon.

    As an aside, I don’t see anyone really calling for higher rates, even those pundits that are in the inflation camp.

  2. Chris
    I agree with you. Once the side effects of the Covid vaccines kick in, those vaccinated people will be too sick to travel and spend money on fun things. I feel those who are vaccinated are way to overconfident that the vaccine will protect them from the Covid when in fact it won’t. My intuition senses that the vaccinated people will start getting sick and dying off this fall.
    I have a friend that completed his two shots at the end of April and in the last eight weeks he has experienced much more frequent dizzy spells. I also noticed that his legs have much more purple varicose veins than before. I think these Covid 19 vaccines exacerbate health problems.
    It is amazing how people view these Covid Vaccine Scientists like gods. When I explain that I don’t trust the technology behind these Covid 19 Vaccines my friends and family are appalled that I question these Scientists with PhDs like I am a know nothing nobody and they are God.
    I explain that they are not the Almighty God but only human like us and are probably sold to Dark intentions.

    I think the top stock market traders in the know see this coming. The stock market went up big time today (Friday)in an effort to cover up these suspicions .
    Also if the economy takes a hit due to these Covid 19 vaccine side effects the Fed Reserve Bank and Washington will unleash another round of stimulus and lower interest rates to less than zero.This will ultimately drive up stock prices.

  3. Well, just like that, everything was peaches and cream today.

    Here’s an interesting observation. Over the past week or so, the mainstream like Bloomberg and the other mainstream business outlets have been degenerating China and the CCP, to the benefit of the US. Perhaps they know they have been laying the propaganda on too thick, and are trying not to be too obvious with their the demoralization campaign.

  4. Maybe the bond market and Dow transports see the upcoming problems from the covid jabs.

    Maybe the winter will be a harsh time for those vaccinated lost souls.

      1. Thanks for sharing.

        While I’m normally reluctant to place a great degree of stock in something that was “a leak”, what this gentleman says does make perfect sense. I think we know enough of the overall agenda to see that this is where the PTB want to take this world. I do worry greatly here in the states about further lockdowns when it begins to get cold out.

        Based on what he is saying, China is certainly not the enemy. As we’ve been saying all along, China is just a golem to be used as a counterbalance and adversary for World War 3. The description of our adversary is made plain in the Bible.

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