Matt Blackman

Transportation Sector May Be Overly 'Clobbered'

See my article Is there a Dow Transport disconnect?
seekingalpha.com/artic...?

Transportation Sector May Be Overly 'Clobbered'

Overly clobbered or just correcting to where it should be? First, the Dow Transport Average is a poor proxy for the transportation sector. It consists of just 20 cherry picked transport companies. If you look at a broader snapshot of the sector, the DJT has been providing an overly rosy outlook of what the sector is really doing.

According to Dow Theory, a trend is confirmed when both the Industrials and Transports move in the same direction. Dow Transports had been holding up artificially well compared to the Industrials and now that inequity is being addressed as those who have been holding these stocks realize that a rally isn't just around the corner as value analysts have been trying to convince us since this correction began...

Am putting together an article to explain this which I will post on SeekingAlpha called DJ Transportation Average Disconnect ...
Cheers,
Matt

Update: Crude Oil, Priced in Gold

State capitalism is socialism you moron. And it is exactly the path the US is on unfortunately.
But follow the Swedish model? Are you smoking something?
Sweden is a small economy relative to the US and socialism is a failed experiment - one only has to look at Sweden to see this to be the case. The so called Swedish experiment took place in 1992 while the US economy (still the largest single economy in the world) was doing relatively well.
If Sweden were a state in the US it would rank among the four poorest US states in terms of per capita prosperity. Socialism i.e. nationalizing companies, may seem like a good solution but it has had painful economic repercussions over the long haul.

Great in theory for those looking for a quick fix but this is a really stupid idea and one only someone writing for the New York Times would consider seriously proposing!

5 Reasons Why the $700B Bailout Could Translate to $250 Oil

You have only shown one side of the argument. The other side is that the string of bailouts pushes US deficits higher triggering a decline in foreign demand for US Treasuries (due to perception of increased risk in holding US dollar-denominated assets) and the offsetting requirement to push interest rates higher to sell enough Treasuries to fulfill monetary demands. This could push up interest rates significantly which would help bolster the US dollar but more importantly, has the potential to cause a deflationary spiral which could push oil well below $70/bbl as the recession compresses demand...