Wednesday 20 May 2015

12pm update - Transports sure looks ugly

Whilst the broader market remains in chop mode (ahead of the FOMC minutes), there is some distinct carnage in the Transports, -1.9% , so far hitting an intra low of 8508. The widening discrepancy between the 'old leader' and the broader market is something most should be carefully watching.


Trans, daily



Trans, weekly'2, rainbow



Summary

*we have a clear break of the broader upward trend, that stretches all the way back to late 2012.
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So, what to make of this? The 'old leader' is not to be dismissed lightly. Although as some realise, whilst the Trans churned sideways across 2012, the broader market climbed.

notable weakness, airlines, DAL -6%, UAL -7%
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VIX update from the Godfather



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time to cook
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12.21pm.. Someone is hitting the sell button TWTR, -2.0%... daily chart is largely flat lining though... likely dead money into Q2 earnings.