Trans, monthly
Trans, weekly
Summary
So, the 'old leader' has almost doubled, in what is now month 31 of the giant wave from Oct'2011. A truly incredible climb, and that is despite having churned sideways across all of 2012 in the low 5000s.
As many recognise, the modern economy is reflected most clearly by the strength..or weakness, of the transportation sector. One aspect helping the Trans sector stocks are the somewhat subdued oil prices (if you can consider $90/100 Oil as relatively low).
I did note last year that by late 2015/early 2016 (which remains my target peak of this economic cycle), that perhaps the Trans' will break the giant 10000 threshold. That would be a gain of over 350% since the March 2009 low of 2134.
Looking ahead
We have the usual weekly jobs data, PMI and ISM service sector reports.
*next sig' Qe-pomo is not until next Thursday.
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Gods help the market now
With the break to new highs, yours truly is considering going long the main indexes within the next few trading days. Is this the ultimate sign of permabear capitulation, or the best contrarian 'SELL' signal out there?
Regardless, if I do go long, the long-stop for me would be no lower than the rising weekly 10MA, currently around sp'1844.
Goodnight from London