Cummins and Donaldson: Sharply Falling Growth Stocks

Includes: CMI, DCI, FXE, IWP, SDK
by: Richard Gorton

The Yahoo Finance three month ongoing chart of Cummins Inc. (NYSE:CMI) and Donaldson Company Inc. (NYSE:DCI), compared to the iShares Russell Midcap Growth Index (NYSEARCA:IWP), shows that these two pollution control companies, exemplify the fall lower of growth stocks ... CMI, DCI and IWP

The unwinding of the yen carry trade, better called the Euro carry trade, is the Deflationary Hurricane, driving these growth stocks lower.

The fall lower of the Euro (NYSEARCA:FXE) from Yahoo Finance, can be seen in the FXE Daily Chart, and the FXE Weekly Chart

  1. FXE from Yahoo Finance shows the fall lower in the Euro.
  2. FXE Daily Chart shows June 24, July 14, and July 28 as important days in world economic affairs.
  3. FXE Weekly Chart shows how a falling Euro has been the instigator of disinvestment worldwide.

The Yahoo Finance historical price database service shows that on August 11, 2008, Cummings popped higher and fell from 73.03. This was the day the Dollar Driven Stock Rally Likely Ended.

The Investment Application
One should be short the stock market by being invested long the Proshares UltraShort Russell MidCap Growth ETF (NYSEARCA:SDK), which is twice the inverse of the daily performance of the Russell MidCap Growth Index ... SDK