Thread: Dow Theory

Thanks for the link. Interesting reading!

The guy mentions the breakdown of the Dow Transports as being one of the reasons why those who say we are about to have a rally are wrong.

I'd say that the reason the Dow Transports are all down, has in very large part to do with the higher cost of oil. You can't drive trucks or fly airplanes as profitably if you planned for one price of oil, and now you've got almost double that price a year later. As this closing in on $100/barrel oil continues, we're going to have a lot of oil dependant companies showing lower profits, and with it, a decline in those company stocks.

We'll have to see how it all plays out.

Plan on more expesive shipping costs, and plane tickets.

Originally Posted by James48843

Thanks for the link. Interesting reading!

The guy mentions the breakdown of the Dow Transports as being one of the reasons why those who say we are about to have a rally are wrong.

I'd say that the reason the Dow Transports are all down, has in very large part to do with the higher cost of oil. You can't drive trucks or fly airplanes as profitably if you planned for one price of oil, and now you've got almost double that price a year later. As this closing in on $100/barrel oil continues, we're going to have a lot of oil dependant companies showing lower profits, and with it, a decline in those company stocks.

We'll have to see how it all plays out.

Plan on more expesive shipping costs, and plane tickets.

Expensive shipping cost have arrived. Inflation is alive in the price of energy!! BIG TIME!!
I priced sending some household items by Yellow Freight from Georgia to Las Vegas, forget it!
325 pounds for $1300.00 dollarsign.gif

if you need to move 325 pounds to Vegas- you need this webssite:

http://www.uship.com

It's kind of like Ebay for shipping.

You put out there what you have to ship, and where is has to go to, and people bid how much they will charge you to take it.

Originally Posted by James48843

if you need to move 325 pounds to Vegas- you need this webssite:

http://www.uship.com

It's kind of like Ebay for shipping.

You put out there what you have to ship, and where is has to go to, and people bid how much they will charge you to take it.

Thanks James. I'll check it out.

Recipe for a meltdown

The primary culprits behind the market turmoil are sky-high stock prices -- and it's only going to get worse, writes Fortune's Shawn Tully.

Analysis worth reading.

http://money.cnn.com/2007/11/27/news...ion=2007112804

Times getting bad? Missed quarterly estimates? Sales down? Just blame subprime mortgages! I mean, what else could it be? They compose a whole 5% of American mortgages. Realistically, how much more is the average American spending in gas for their vehicle monthly? $20 tops?

People say these things because they hear it in the media or they hear their co-workers talk about it around the water cooler. Smart Money is the Dow Theory. Smart Money is buying at these levels.

[quote=Bullitt;134791]Realistically, how much more is the average American spending in gas for their vehicle monthly? $20 tops?
[quote]

Guess I'm above average, as I'm spending $20 more per fill up. I fill up every 7-10 days.

Originally Posted by weatherweenie

Guess I'm above average, as I'm spending $20 more per fill up. I fill up every 7-10 days.

I ride a motorcycle for my work transportation. 5 day work week. Prices averaged from my QUICKEN budget.

2004 I was paying $1.74/g * 5 gallons = $8.70 a week
2005 ------------ $2.30/g * 5 gallons =$11.50 a week
2006 ------------ $2.80/g * 5 gallons =$14.00 a week
2007 ------------ $3.10/g * 5 gallons =$15.50 a week

This is the only item in my budget that has gone up 200+% since 2004.

Well, what can I say? You guys proved me wrong. At least we're lucky enough to get that federal pay increase every year along with locality pay increase every now and then. Without that I'd probably be 'living in a van down by the river' with Matt Foley as my only neighbor.

Hey Bullitt,
Apparently you don't work for DoD. I'm on the new NSPS (with Navy). No guarantees here! All based on "performance" - yeah right! Supervisors being told to give everyone "3s" (on "5" scale), regardless of performance.

They can also pass on no increases- if funds are not there. Most recently, I've heared Sec'y Gates may be handing Army civilians "pink slips" to maintain funding for Iraq war.

Its a brave new world!
And, don't get too comfy - because I hear other Fed gov't may follow!!!
VR

Another article about the Dow Theory being subject to interpretation.

http://www.financialsense.com/Market...2007/1130.html