Monday, June 1, 2015

The inscrutability of the US market in two charts


On the one hand, here's $TRAN:


My god look at that horrible chart, the US economy is in decline, it's the collapse of the Transports, all you Dow theory people need to sell sell sell!

On the other hand, here's $SOX:


My god look at that beautiful chart, the semiconductor market is on fire, it's the dawn of a new era in the US economy, all you tech people need to buy buy buy!

This sorta reminds me of 2000, and how the best trade in the world back then was to puke your QQQ and buy stocks like CNI, CSX and UNP. Because, as it turned out, the market had forgotten that you can't ship wheat or cattle by stuffing them down a fiber optic line.

I have no clue what's the story behind the above two charts, except that I'm safer holding QQQ than holding SPY, which is what I'm doing anyway, but not much because I'm more into holding junior golds and Japan right now.


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