Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Is it just me and the guy that posted these charts that think something ain't quite right.
==============================================================

Hi Joe,
Veddy Strange indeed..... Unless we blame the PPT or what ever the hell their name might be these days. One thing is highly probable however, and imo, and that is that the tradings desks of JPM and the other bankster cohorts who work hand in hand with the Treasury/AG and his Merry men colossus are prolly raking in bucks by the truckload during this trucking rally. <g>

Here's an interesting perspective from Mike Bolser @ LeMetropole Cafe.

Much has been made by Richard Russell and others regarding the odd rise of the DOW transport index (DTX) at a time of skyrocketing fuel prices and a flat DOW.

I normalized the DTX historical data (Placed on the right axis now with the DOW), inserted a 30-day moving average (Blue) and compared the Repo Pool's red 30-day moving average with the DTX.



You be the judge if there are similar patterns in the moving average of the Repo Pool and the DTX. Indeed, examine the slight lag in the pool's 30-day ma and the DTX ma in December, however today with a far larger and more robust pool size the reaction time between the pool and the DTX is now without delay.

I think this may explain why the DTX is rising at a time when by all logic it should be falling.

If you're interested, Mike has his own website:

http://www.interventionalanalysis.com.