[erierambler]

I'd like to start this off with some charts for the Transports and Dow Industrials. It will be about 3 weeks from now that I can really focus more here on this thread, right now only on weekends. These charts are not the normal Indexes , but that of my own. Notice when the charts are in sync and when they diverge. Such as the Indu makes a new high in Oct/07 and the Tran does not. Then there is a test and failure.( noticeable in Dec/07 ) Now we are insync again and the Tran are reaching old highs. New highs in the index are confirming. I mainly trade the ES, so this thread will become about that but one needs to look at the trees in the forest.
erie

[erierambler]

here are some levels for Sectors, Futures (YM, NQ, and Es), and the ES itself.

[erierambler]

same charts as before only updated. Two charts have broke above potential resistance and others have not. ( creating divergence ). New highs are confirming price but sectors chart not breaking out yet. 10 day Mamis oscillator shows divergence big time so therefore very wary here.
erie

[erierambler]

futures and sector charts

[DbPhoenix]

It might pay to break down the transports the way we break down the industrials. I wonder, for example, if containers and packaging can act as a warning regarding the strength of the transports per se:

[erierambler]

Originally Posted by DbPhoenix »

It might pay to break down the transports the way we break down the industrials. I wonder, for example, if containers and packaging can act as a warning regarding the strength of the transports per se:

You've been doing this a lot longer than me. By the looks of the chart they are already diverged, correct? I have the Industrials not making the new high ( creating divergence ) this time , so wouldn't they be showing the warning?
Note: I have for the Transports on my chart: UPS, UNP, FDX, BNI, NSC, CSX, LUV, EXPD, CHRW, AMR, and JBHT. For the Industrial: XOM, GE MSFT, T, WMT, PG, CVX, JNJ, IBM, BAC. These are equal weighted composites.
Of course you are looking at bigcharts .
erie

[DbPhoenix]

As long as the Inds and Trans are going in the same direction, they needn't be making new highs together.

As for breaking down the transports, I'm not referring to stocks but to groups within transports, e.g., Industrial Engineering, which makes the trucks and railcars and engines; Containers and Packaging, which is self-explanatory; Delivery Services; etc. And it's useful to look at Industrial Transportation, which is nearer to the original constitution of transports. It's the same thing as the transportation average only without airlines.

One can also look at trucking alone or marine transportation alone and so on to determine just where the strength lies: in this case, rails and trucking. Which is why I mentioned containers and packaging. If trucks and rails are strong, why aren't containers and packaging equally strong? And does it matter?

[erierambler]

Originally Posted by DbPhoenix »

As long as the Inds and Trans are going in the same direction, they needn't be making new highs together.

One can also look at trucking alone or marine transportation alone and so on to determine just where the strength lies: in this case, rails and trucking. Which is why I mentioned containers and packaging. If trucks and rails are strong, why aren't containers and packaging equally strong? And does it matter?

Those 2 questions I can't answer, LOL. The chart I posted of the transports shows price going almost straight up. That can't continue, unsustainable....price has to consolidate or retrace, unless the buying presssure comes from the industrials.
erie