Amazon made a lower high in July and gapped down after earnings on July 29.
Bad sign !!!
Refering to the Dow Jones Transportation (DJT) index declining for the past few months, this is a weak sign of the general economy. Transportation is very sensitive to the economy and as everyone knows, you need transports to shops finished products from one place to another, particularly for a business like Amazon. One exception would be software companies to an extent that they do not need to rely on transportation to deliver their products, they just do it over the internet in most cases.
Fedex and UPS have also gapped down and trading sideways recently.
Where to from here? I would expect businesses like Amazon, Etsy, Ebay to soften their sales and share price should be going sideways or down. I don't foresee the bull run to continue for a while.
I'm expecting a minor correction in the markets (SPX & DOW & IWM) next few weeks or so.
Bad sign !!!
Refering to the Dow Jones Transportation (DJT) index declining for the past few months, this is a weak sign of the general economy. Transportation is very sensitive to the economy and as everyone knows, you need transports to shops finished products from one place to another, particularly for a business like Amazon. One exception would be software companies to an extent that they do not need to rely on transportation to deliver their products, they just do it over the internet in most cases.
Fedex and UPS have also gapped down and trading sideways recently.
Where to from here? I would expect businesses like Amazon, Etsy, Ebay to soften their sales and share price should be going sideways or down. I don't foresee the bull run to continue for a while.
I'm expecting a minor correction in the markets (SPX & DOW & IWM) next few weeks or so.
