How Do You Know If a Pilot’s in the Room?

November 8, 2017

Mish's Daily

By Mish Schneider


He tells you.

In 1862, Charles Dow started the Dow Jones and Co.

2 years later, the oldest US stock index, DJTA is founded.

The DJTA Includes railroads, airlines, trucking, marine transportation, and delivery services.

The DJTA is still closely watched.

It confirms the state of the U.S economy.

A well-accepted theory:

The industrials make and the transports take.

If the DJTA and DJIA align- a good sign all around.

If they diverge -a potential reversal of the trend.

In other words, if the DJIA is climbing while the DJTA is falling, it may signal economic weakness ahead, since goods are not being transported at the same rate at which they are being produced, suggesting a decline in nationwide demand.

There are 20 holdings in the IYT (Transportation ETF) basket.

The top 5 include FEDEX, Norfolk Southern, Union Pacific, UPS and JB Hunt Transport.

Airlines make up 19%. Air Freight 31%.

The prefix Trans means-on the other side of, across, beyond or changing thoroughly. Comes from Latin.

IYT is very close to the rest of the Modern Family.

Granny Retail worries when IYT gets too thin.

Not that she should talk. Brick and Mortar Retail suffers from anorexia!

Anyway, the rest of the family watches IYT carefully.

They hope it doesn’t fade away.

Weekly Chart shows a strong uptrend exists until it breaks below 168.50, the 50-week moving average.

Please watch IYT live on Facebook here:
https://www.facebook.com/mishsmarketminute/videos/1919953018325275/

S&P 500 (SPY) 257.75 key line of support.

Russell 2000 (IWM) Now that it cleared back over 147 it needs to hold there

Dow (DIA) 234.56 the 10-DMA been holding since early September

Nasdaq (QQQ) New all-time highs again

KRE (Regional Banks) Unconfirmed warning phase. 54.80 key weekly support

 

SMH (Semiconductors) Gosh, this looks like its consolidating at the new highs unless it gaps lower.

IYT (Transportation) Confirmed warning phase. 175.00 pivotal as the 50-DMA.

IBB (Biotechnology) 310 support holding

XRT (Retail) Maybe a reversal-needs to confirm

IYR (Real Estate) Rallied into resistance with some overbought conditions. Support at 82.00

XLU (Utilities) Holding

GLD (Gold Trust) Tried but has to close over 122

SLV (Silver) Like to see this clear 16.30

GDX (Gold Miners) Needs to clear 23.10 with volume

USO (US Oil Fund) 10.80 support

XOP (Oil & Gas Exploration) Cleared 35.52 the 50-week MA, which is a good risk point

TAN (Solar Energy) Looks higher from here

TLT (iShares 20+ Year Treasuries) 125.50 pivotal

UUP (Dollar Bull) 24.37 the 200-week MA and 24.80 resistance

 

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