Fedex brings a warm glow
By Colin Twiggs
June 23rd, 2014 9:00 pm EDT (11:00 am AEST)
- Bellwether transport stock Fedex completes a cup-and-handle continuation pattern.
- The Dow continues its strong up-trend.
Bellwether transport stock Fedex completed a strong cup and handle continuation pattern, offering a target of 160*. Recovery of 13-week Twiggs Money Flow above zero and the descending trendline indicates medium-term buying pressure. Breakout brings a warm glow as I find Fedex one of the most reliable indicators of overall market direction — as in November 2007.
* Target calculation: 145 + ( 145 - 130 ) = 160
Dow Jones Industrial Average is testing medium-term resistance at 17000. Breakout is likely and would signal an advance to 17500*. Recovery of 13-week Twiggs Money Flow above the descending trendline would indicate medium-term buying pressure. Reversal below 16750 is unlikely, but would warn of a correction.
* Target calculation: 16500 + ( 16500 - 15500 ) = 17500
Ironically Iraq may yet prove to be the source of our salvation. For the United States, the ongoing war makes plain the imperative of putting America's house in order. Iraq has revealed the futility of counting on military power to sustain our habits of profligacy. The day of reckoning approaches. Expending the lives of more American soldiers in hopes of deferring that day is profoundly wrong.
~ Military historian Andrew Bacevich:
The Limits of Power - The End of American Exceptionalism