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Re: Huge Divergence Between the DOW Tran Index and Dept of Transportation Stats

By: Zimbler0 in POPE 5 | Recommend this post (0)
Fri, 28 Dec 18 8:49 PM | 60 view(s)
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Msg. 18338 of 62138
(This msg. is a reply to 18295 by capt_nemo)

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>>>
The BTS data makes you think the economy is humming on all four cylinders. The DOW transportation index is another matter indeed.
>>>

Well, yeah.
The REAL transportation activity is not affected by the Algo's.
But the DOW stock prices are.

Think about it.
Why were power company share prices going down in 1999?
. . . . . (Because folks was selling out and buying into the dot.com mania.)

Why did power company share prices go up in 2000 (after the crash) ?
. . . . . (Because the smart money was bailing out of risky stuff and into saner holdings.)

Today? We got algorithm driven trading. And most of them looking at the same sort
of 'indicators' and reacting in similar fashions. Shysters trying to make a few
cents a share on massive trading volume . . . Trigger the algo's and maybe 'their'
algo can make some money.

Zim.




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Mad Poet Strikes Again.




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The above is a reply to the following message:
Huge Divergence Between the DOW Tran Index and Dept of Transportation Stats
By: capt_nemo
in POPE 5
Fri, 28 Dec 18 7:16 AM
Msg. 18295 of 62138

http://moneymaven.io/mishtalk/economics/huge-divergence-between-the-dow-tran-index-and-dept-of-transportation-stats-0QNA2h_VN0W2RTX-f8LtFw/


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