The Dow Jones Transportation Average (TRAN) shows no signs of a global recession with price well above the 1:1 descending Gann angle (red diagonal).
Chart courtesy of Stockcharts.com
This is odd in that it is pretty much agreed to by the “gurus” that there will be a recession of some depth in the US this year. It is possible that the US recession will not spread globally but I don’t believe that is possible. It is also possible that prices already reflect a small recession in the price.
This chart, along with the VLE and the RUT charts, are the indicators I am watching to determine the true affects of the credit problems on the economy. If these break down then it is time to forget about long side equities for another 6 months.
At this point I do not see any affected charts other than those related to the financials.
Tags: Gann Angle Fan · Transports2 Comments
2 responses so far ↓
Andy, what do you think of the $VIX right now, ???? It has barely broke my trend line, could it go back to $27 area? thanks.
Libby - I’m not a big fan of the VIX but I think with shorting banned on a lot of stocks, I think it could do almost anything and we can’t tell what that means.