Trouble in the Transports
The subject of lagging relative strength in the transportation sector arose again this week, as traders noted the divergence and its potential bearish implications. We would say that traders are correct to be concerned about the transportation sector, but not because of the price divergence and lagging relative strength.
Instead, traders should be concerned about the internal liquidity divergence and the eroding internal condition of the sector. The average transportation stock is being starved for liquidity, and this suggests that traders are still concerned about the state of the economy and its growth potential....341 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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