Professor Elam

Tuesday Jan 29 2019

CAT and NVDA announce lower earnings, DJIA drops 208 points.

CAT

NVDA

CAT is an industrial bell weather and NVDA is the same for semi onductor chip makers. Both toppe with the overall market Oct 3 and ave been in downtrends sine.

A9 and 13% drop yesterday is probably signalling bad news for the markets.  I m expecting a top in most indexes this week.

Transports

The Transports are a more sensitive index to the economy than the Industrials. Take a look, what do you see?

Transports peaked  in late Sept before the Industrials. Now TRAN is failing at its shortest moving average, the 50 day. The other MAs are converging which is usually a pre cursor to a change in trend.