Edge and Odds

The enemy of knowledge is not ignorance, it’s the illusion of knowledge (Stephen Hawking)

It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so (Mark Twain)

Edge and Odds

Invest with smart knowledge and objective odds

Consumer Watch

NEW$ & VIEW$ (16 MAY 2016)

U.S. Retail Spending Strengthens

Total retail sales & spending at restaurants increased 1.3% (3.0% y/y) during April following a 0.3% decline, unrevised from the preliminary report. The rise compared to expectations for a 0.8% improvement in the Action Economics Forecast Survey. The figures reflect annual revisions published late last month.

Stronger sales of motor vehicles led spending as a 3.2% rise (3.1% y/y) recouped March’s 3.2% decline. The increase compares to a 5.1% increase in unit auto sales which recovered the prior month’s 5.5% drop. Excluding autos, total retail spending increased 0.8% (3.0% y/y) which built on gains of 0.4% and 0.2% in the prior two months. A 0.4% rise had been expected.

Gasoline service station sales rose 2.2% (-9.6% y/y) following a 3.1% increase as prices rose. Building material store sales fell 1.0% (+8.2% y/y) and reversed two months of increase. Purchases at restaurants improved 0.3% (5.2% y/y) following a 0.4% fall.

Spending in the retail control group, which excludes autos, gasoline, building materials and restaurants increased 0.9% (3.6% y/y). That also was improved from 0.2% and 0.4% increases in the prior two months.

0.2% (4.2%), the same as in March. Showing a slight decline were general merchandise store sales (0.5% y/y), and they’re down slightly versus yearend.

 large image large image

David Stockman disputes the numbers blaming the seasonal adjustments:

Another Headline Head Fake——-The Consumer Can’t Save The U.S. Economy

(…) For crying out loud, seasonally-maladjusted, weather-whacked single month deltas from the rickety government statistical mills are only one step removed from noise. But they are seized upon by the financial press because the latter are exceedingly lazy and always on the prowl for anything that might be “good news” for the stock averages.

But that’s what Bubble Finance has come to. Namely, a cult of the daily stock market that is so myopic, superficial and sycophantic that it has practically reduced financial journalism to noise, as well. (…) Disappointed smile

In fact, the April retail sales report brought even more evidence of continued deceleration from the 4-6% annual gains recorded earlier in the recovery. It is reminiscent of the pre-recession patterns of the past, not a signal that the consumer has spung back to life. (…)

ABOOK May 2016 Retail Sales Total

Other good YoY charts from Doug Short:

Core Retail Sales YoY
Control Sales YoY
Business Inventories Have First Gain in 6 Months

Inventories remain too high across the board.

 large image large image
 large image large image
U.S. Producer Prices Increase Broadly

The headline Final Demand Producer Price Index increased 0.2% (0.0% y/y) in April after an unrevised 0.1% March dip. The rise compared to a 0.3% increase expected in the Action Economics Forecast Survey. A 0.3% decline (-2.0% y/y) in food prices offset a 0.2% increase (-12.0% y/y) in energy prices. Excluding food & energy, the PPI improved an expected 0.1% (0.9% y/y).

Core producer goods prices for final demand increased 0.3%, following four consecutive 0.1% gains. It reflected the emerging improvement in factory sector activity. Durable consumer goods prices gained 0.1% (0.5% y/y) and core nondurable goods costs increased 0.6% (4.0% y/y), the strongest rise in three months. Capital equipment prices edged 0.1% higher (0.5% y/y) following three months of remaining unchanged.

US recession worries re-emerge Treasury yield curve sparks fears over outlook for economy

A measure of the US Treasury yield curve flattened on Friday to levels not seen since early March, reviving once again anxiety about the health of the world’s most important economy.

The spread between 10-year and 2-year US Treasury notes tightened on Friday to as low as 94.9 basis points, the lowest level on an intraday basis since March 8. It would also be the lowest closing level since December 2007, according to Bloomberg data, writes Adam Samson in New York.

The flattening in the yield curve suggests longer-term borrowing costs are moving closer to shorter-term costs, and signals investor concerns about the longer-term outlook for the economy. A worse situation would be an inverting in yield curve, something that remains far away, which would indicate investors reckon the Fed may have to reduce short-term rates because of an economic slowdown.

While economic researchers are mixed on whether a prolonged period of low interest rates has impaired the yield curve’s power as a recession harbinger, the flattening is just the most recent sign of investors’ uneasiness over the strength of the US economy. (…)

Bears are also quick to point out that the recovery in junk bonds, which has been led by a rally in speculative-rated energy debt that has strengthened with oil prices, could be pre-mature. After all, they say, fundamentals look downright grim.

The global default tally has climbed to 62 issuers for 2016, which is the highest level at this time in the year since 2009, according to data from Standard & Poor’s. At the same time, speculative-grade downgrades have been running at 55 a month year-to-date, far higher than the 29 a month rate over the same period in 2015, S&P data show. (…)

Chinese Indicators Lag Expectations

All weaker than consensus and weak, especially retail sales which reflect slowing domestic demand.

Industrial output rose 6.0% year-over-year in April, compared with 6.8% growth in March, the National Bureau of Statistics said Saturday. This was below a median forecast of 6.6% growth by 15 economists surveyed by The Wall Street Journal.

Fixed-asset investment in urban areas grew by a weaker-than-expected 10.5% year-over-year in the January-to-April period, compared with an annual increase of 10.7% for the first three months of 2016.

Pointing up Retail sales—a traditional bright spot—grew by a less-than-expected 10.1% in April compared with a year earlier, slowing from March’s 10.5% year-over-year rise, the statistics bureau said. (…)

Housing sales rose 61.4% year-over-year during the January-to-April period, the statistics bureau said Saturday. This compared with a 60.3% year-over-year increase for the first quarter of 2016, and 16.6% growth for all of 2015. Property investment grew 7.2% year-over-year in the January-to-April period, compared with a 6.2% annual rise in the first quarter of 2016. (…)

The central bank Saturday also said a sharp drop in April bank lending was the result of local governments tapping the bond market, rather than going to financial institutions for funds. Last month, banks lent a less-than-expected 555.6 billion yuan ($85.1 billion). This followed 1.37 trillion yuan in bank loans in March, and a record 4.6 trillion yuan for the first quarter of 2016—more than was released during the depth of the financial crisis in early 2009.

Fiscal spending also decelerated in April with 4.5% year-over-year growth compared with 15.4% in the first quarter. China set an annual fiscal spending growth target of 6.7% this year and a 2016 fiscal deficit target of 3% of gross domestic product, up from 2.3% in 2015. (…) (chart from FT)

Chart: China credit flows

China Housing Revival Buffers Economy China’s housing market is showing nascent signs of recovery after a two-year downturn, providing a cushion for the economy.

(…) “Leaving my money in the bank is meaningless and it will only devalue,” said Wang Hong, a 35-year-old office administrator who is looking to buy a second home in Nanjing. “If home prices fall and if I get cash-strapped, I will just sell my first home.” (…)

Demand for homes is growing at a similar rate across China but price gains in the top tier cities are outpacing those of smaller ones, as developers struggle to sell stockpiled properties, real-estate experts say.

“We should not neglect the fact that many more cities [are] still in the process of clearing their dwelling stock,” said China Vanke, a Shenzhen-based property developer, said in its annual report in late April.

Vanke calculated the dwelling-to-household ratio in 49 relatively developed Chinese cities and concluded that 29 of them, including Kunming, Changzhou and Hangzhou, must slow new construction to allow the population to grow or risk increasing the stock of empty homes.

One sign of more plans for construction is that the price of residential land in 105 cities surveyed by the Ministry of Land and Resources rose 4.7% in the first quarter from the same period a year earlier. It was the third straight quarterly rise.

The faster than expected revival of housing construction is driving concern that builders are responding too quickly to the recent surge in sales.

“Housing starts will need to remain below sales for a few years in order to absorb the overhang of unsold properties and put construction growth on a more sustainable trajectory,” Capital Economics’ Mark Williams and Julian Evans-Pritchard wrote in April. (…)

Oil Rises as Goldman Sees Supply Shortfall

(…) Goldman Sachs said that the recent outages from large producers such as Canada and Nigeria had sent the oil market from nearing full storage levels to being in deficit.

Goldman Sachs has been among the most bearish of banks on the price of oil. It still predicts tough times ahead for the sector, saying that low-cost oil producers could push the market back into surplus by early 2017.

The bank remains relatively negative on price, forecasting $45 oil by the first quarter of 2017 and $60 a barrel by the end of that year.

New production outages in Nigeria, caused by attacks on infrastructure, are likely to continue supporting the oil price in the short term. They come just as concerns over supply in Canada are starting to fade as its oilfields restart following shutdowns caused by wildfires. (…)

Still, the biggest driver in the oil price is an uptick in global demand, not supply, Barclays said. A mild northern hemisphere winter had sapped energy consumption, but strong demand from China and India are now providing support for oil prices. (…)

Russia Weighs Tax Increases to Fill Budget Gaps While the government is spending its oil reserves to shore up the budget, officials privately say that won’t be enough to fill the gap between revenues and expenditures within just a few years.

Several Russian officials say the government is considering raising income-tax levels and increasing value-added tax but that any changes would only take place after 2018—a presidential election year. Any increase would be a sensitive issue in Russia, where real incomes shrank 9.5% in 2015 and the number of those living below the poverty line was projected to grow in 2016 at its fastest rate since the 1998 crisis, according to the World Bank. (…)

EARNINGS WATCH

As shown, 60.1% of the 2,400+ companies that have reported this quarter have beaten consensus analyst estimates.  That’s well below last quarter’s reading but slightly above the reading from two quarters ago.  Since 1999, the average beat rate for any given quarter has been 61.9%, so this season is tracking just below average.

beatrates

Overall, 91% of the companies in the S&P 500 have reported earnings to date for the first quarter. Of these companies, 71% have reported actual EPS above the mean EPS estimate, 7% have reported actual EPS equal to the mean EPS estimate, and 22% have reported actual EPS below the mean EPS estimate. The percentage of companies reporting EPS above the mean EPS estimate is above both the 1-year (69%) average and the 5-year (67%) average.

In aggregate, companies are reporting earnings that are 4.1% above expectations. This surprise percentage is slightly below both the 1-year (+4.2%) average and the 5-year (+4.2%) average.

In terms of revenues, 53% of companies have reported actual sales above estimated sales and 47% have reported actual sales below estimated sales. The percentage of companies reporting sales above estimates is above the 1-year (50%) average but below the 5-year average (56%).

In aggregate, companies are reporting sales that are 0.4% below expectations. This surprise percentage is below both the 1-year (+0.6%) average and above the 5-year (+0.7%) average.

The blended earnings decline for the first quarter is -7.1% this week, which is larger than the blended earnings decline of -6.9% last week. Downside earnings surprises reported by companies in the Financials and Consumer Discretionary sectors were mainly responsible for the increase in the overall earnings decline for the index during the past week.

The blended earnings decline for Q1 2016 of -7.1% is smaller than the estimate of -8.8% at the end of the first quarter (March 31). The first quarter marked the first time the index has seen four consecutive quarters of year-over-year declines in earnings since Q4 2008 through Q3 2009. It also marked the largest year-over-year decline in earnings since Q3 2009 (-15.7%).

If the Energy sector is excluded, the blended earnings decline for the S&P 500 would improve to -1.8% from -7.1%. If the Energy sector is excluded, the blended revenue growth rate for the S&P 500 would jump to 1.2% from -1.7%.

The upcoming week will be another focus week for retail earnings for the S&P 500, as 12 of the 21 companies in the index scheduled to report earnings next [this] week are retailers.

image

At this point in time, 83 companies in the index have issued EPS guidance for Q2 2016. Of these 83 companies, 58 have issued negative EPS guidance and 25 have issued positive EPS guidance. The percentage of companies issuing negative EPS guidance is 70%, which is below the 5-year average of 73%.

Similar finding at Thomson Reuters:

image

Deal with it: the M&A slow-down

A few big transactions are still under way, such as Bayer’s potential $47 billion bid for Monsanto, a seed and pesticide firm. But an epic spree is petering out. At the current pace, global activity in the second quarter will be down by 11% in dollar value from the first and by 35% from the previous year. Bosses are jittery about Brexit, China’s economy and America’s election. Two further factors are dampening spirits. First, the American Treasury’s decision to squelch the tax-arbitrage deals known as “inversions”: in April it scuppered Pfizer’s giant takeover of Allergan. Second, America’s antitrust regulators are getting tougher: for example, blocking the purchase by Halliburton, an oil-services company, of a rival, Baker Hughes. Fat profit margins, high valuations, low interest rates, lots of spare cash and stagnant top lines mean American firms still have strong incentives to do deals. Perhaps they will turn their attention abroad. (The Economist)

Bull Market Losing Biggest Ally as Buybacks Fall Most Since 2009

(…) Announced repurchases dropped 38 percent to $244 billion in the last four months, the biggest decline since 2009, data compiled by Birinyi Associates and Bloomberg show. (…)

To be sure, large banks such as Citigroup Inc. and Morgan Stanley, whose capital plans are awaiting Federal Reserve approval, were among the missing, and their programs may restart later in 2016. Stress test results are due before the end of June. (…)

The first-quarter slowdown was mostly executives responding to the economic and credit stress earlier in the year, according to Joseph Amato, chief investment officer of equities at Neuberger Berman LLC in New York, where the firm oversees $243 billion. As the fear subsides, buybacks are likely to stay elevated, he said. (…)

After beating the market by at annualized pace of 3.5 percentage points in the four years through March 2015, the S&P 500 Buyback Index that tracks stocks with the highest payout ratio has since trailed the broad measure by almost 10 percentage points. (…)

NEW$ & VIEW$ (21 MARCH 2016)

Widening Home-Price Gap Makes Trading Up Harder

(…) The analysis, by real-estate tracker Trulia, found that fewer midrange or trade-up homes came onto the market over the past four years in metro areas where prices of high-end homes shot up the most.

Midtier homeowners are less likely to try to sell if premium homes are out of reach. That reduces inventory of such homes, leading to sales stagnation and higher prices.

“People may be in a good spot to sell their homes, but if they can’t find another home to buy they’re going to be more likely to stay put,” said Ralph McLaughlin, chief economist at Trulia. “It’s really a gridlock, a traffic jam that’s playing out in the housing market.” (…)

Starter homes are defined as those in the bottom third of the distribution, with a median national price of $154,156, while trade-up homes have a median price of $267,845 and premium homes are priced at a median of $542,805. The median prices for each tier can vary widely across metro areas.

Among the top 100 metro areas across the country, the study found a high correlation between the lower inventory of midrange homes and the price gap between trade-up homes and premium homes. (…)

Across the U.S., Trulia found the inventory of starter homes has decreased the most—by 43.6%—over the last four years, followed by trade-up homes, at 41%, and premium homes at 33.4%. (…)

Q4 Household Debt Service Ratio Very Low

Student-Loan Delinquencies Decline The number of Americans at least a month behind on their student-loan payments is declining, reversing a trend the Obama administration has called a threat to the nation’s economic health.

About one in five Americans, 19.7%, who were out of school and required to be making payments on federal student loans, were at least 31 days behind as of Dec. 31, the Education Department said Thursday.

That figure, which covered only loans made directly by the government, the most common type of student loan, was down from a delinquency rate of 22.2% a year earlier. (…)

The growing labor market is a likely factor behind the drop, as more Americans with college and graduate degrees find jobs and their incomes slowly rise.

Another factor, however, is a surge in enrollment in so-called income-based repayment plans, which set borrowers’ monthly payments as 10% or 15% of their discretionary income, as defined by a formula. About 4.6 million borrowers with direct federal loans were enrolled in such plans as of Dec. 31, a 48% increase from two years earlier. (…)

Other reports show the typical balance of those behind on their student loans is relatively small. Borrowers in default owed a median $8,900, the Education Department reported last year.

Canadian retail sales rebound sharply, lifting growth outlook

(…) Economists on Friday were focused on Statistics Canada’s retail sales report, which showed a 2.1 per cent increase. That exceeded analysts’ expectations and recovered December’s similar decline. Excluding the auto sector, sales were up 1.2 per cent, while overall volumes gained 2.1 per cent. (…)

Consumers had cut back their spending in December in the midst of unseasonably warm weather but five sectors bounced back in January from lower end-of-year sales.

Motor vehicle and parts dealers’ sales jumped 4.8 per cent, the sector’s third gain in four months as sales at new car dealers rose.

Hopefully, these sharp gains won’t be revised down like the U.S. data.

Gavyn Davies: Will China’s new macro strategy pay off?

(…) The latest policy changes are confronting a deteriorating economic situation since the start of the year. The graph below, taken from Fulcrum’s nowcast models, encapsulates the key features of Chinese growth in the current decade:

The long run growth rate (mainly determined by the supply side of the economy) has slowed from 10 per cent at the start of the decade to only 6 per cent now. Not much can be done about that.

There is also clear evidence of a mini cycle around this trend that has an average duration (from peak to peak) of only about a year. The latest mini cycle seems to have lurched downwards in the past 3 months. The estimated activity growth rate today is around 4.7 per cent, which is lower than at previous troughs of the mini cycle, and the model’s confidence bands now extend downwards to 2 per cent, which would represent a true hard landing.

Yet the markets seem completely untroubled by this development, believing that it will prove temporary, and will be reversed by the latest stimulus from demand management. This optimistic expectation will probably prove accurate, though there will be some nervousness until the nowcast starts to rebound.

Macro policy faces a very difficult challenge. It needs to accelerate the rebalancing of the economy without proceeding so rapidly that a hard landing becomes likely. Ideally, such a strategy would have the following ingredients:

  • fairly rapid closure of moribund capacity in the manufacturing sector to reduce deflationary pressures;
  • easier monetary policy to assist domestic demand and cushion the property sector;
  • easier fiscal policy, directed mainly towards boosting consumption rather than investment;
  • a one-off adjustment (of about 10-15 per cent) in the exchange rate to restore confidence in the basket “peg”, thus ending destabilising capital outflows which undermine the necessary easing in domestic monetary conditions;
  • a comprehensive programme to recapitalise the banking sector as loan write offs are accelerated, mainly in the area of non performing loans to the state owned enterprises;
  • further reforms to broaden price signals in the financial and services sectors, and the labour market.

(…) As the SOE work-out takes place, the government has now clearly recognised the need to support the economy through easier monetary and fiscal policy if necessary.

On the monetary side, PBOC Governor Zhou said that the policy stance will remain on the looser edge of “prudent”, which is the central setting of the five main categories used by the central bank. The announcement of a 13 per cent target for M2 growth, and a new 13 per cent target for total social financing, suggest that the authorities have now accepted that they cannot bring down overall leverage in the economy at present. In fact, with nominal GDP likely to rise by only about 8-9 per cent this year, the debt/GDP ratio will continue to rise rapidly. No change in the “basket peg” for the exchange rate is likely, which might mean that further squalls will take place in the currency markets.

On the fiscal side, the new budgetary announcements suggest that the overall thrust of policy will be slightly expansionary, though independent fiscal watchers have reached different conclusions on how expansionary it will be in practice.

The table shows J.P. Morgan’s estimates of the various budget categories. The official budget (lines 1 plus 2) shows little change in the policy stance, but there is a consensus among fiscal watchers that quasi-fiscal easing (lines 5 to 7) will increase markedly if needed.

Although the Premier has emphasised that there will be tax reductions to support the household sector (which will make Ben Bernanke happy), it seems inevitable that the main source of fiscal support will come from infrastructure spending, as it has always done in the past. In fact, that is clearly shown in the fixed investment data released so far in 2016.

What is the overall verdict? In many ways, the strategy resembles the SOE work-out that occurred in the late 1990s and early 2000s (well summarised here). That involved many years of hard graft, but it did succeed in the end.

(…) “Lending as a share of GDP, especially corporate lending as a share of GDP, is too high,” Zhou said. He said a high leverage ratio is more prone to macroeconomic risk. (…)

Corporate debt alone now stands at 160 percent of China’s GDP, according to the Organization for Economic Cooperation and Development. The group’s secretary-general, Angel Gurria, said earlier in the day that sectors with especially high leverage include cement, steel, coal and flat glass, and China must address the issue. (…)

One option for addressing high leverage is to develop “robust capital markets,” Zhou said. The country should channel more savings into the capital markets, which will help reduce leverage in the corporate sector and boost equity financing, he said. (…)

Earlier in the day, Vice Premier Zhang Gaoli said the government would do what it must to avoid turmoil in stocks, the currency, bonds and property. He said the government should ensure that a plan for local governments to swap high-cost debt for cheaper municipal bonds proceeds.

“There will be no systemic risks — that’s our bottom line,” Zhang said.

Auto China Car Sales Suffer Biggest Crash On Record To Start 2016

2016 has started with a 44% collapse in China passenger car sales. This is thebiggest sequential crash and is 50% larger than any other plunge in history.

While there is a seasonal effect here obviously, the sheer scale of this 2-month drop – which removes the new year holiday affect – indicates something is terribly wrong in China.

Shifty Something is also terribly wrong at Zerohedge as the so-called Tyler Durden omitted to take account of the phenomenal growth in SUV sales in recent months. From the China Daily last week:

China’s auto sales fell slightly in February, though industry officials say the dip does not reflect a longstanding trend.

Last month, 1.58 million vehicles were sold, according to the China Association of Automobile Manufacturers. (…) Auto sales in the first two months this year totaled 4.09 million, a 4.4 percent growth from the same period last year, similar to last year’s overall growth rate. (…)

In February, China sold 478,000 SUVs, a 44 percent surge year-on-year, a continuation of the sales momentum seen last year. (…)

Sedan sales were another story. Almost 700,000 sedans were sold in February, a 17.8 percent slump year-on-year. (…)

Why the Global Oil Glut Might Not Fill Swimming Pools After All
M&A Bankers Saying No to More Junk Debt Banks are less willing to take on and sell the junk bonds and leveraged loans that heavily indebted acquirers use to pay for takeovers.

Credit Suisse Group AG, Jefferies Group LLC and Wells Fargo & Co. are among the firms turning down new requests for financing—typically from low-rated companies—as they retreat from the lucrative but risky business of backing debt-heavy buyouts, people familiar with the matter say.

Banks guarantee the funding in these deals, hoping to then offload all or most of it to bond and loan investors. They promise to provide the money themselves if they can’t find others to buy the debt. But as markets swooned in the months since the summer, investors have lost their appetite for the riskiest securities, making them harder to sell.

Some banks have unloaded the debt at discount prices, taking losses, while others are holding the loans in hopes of getting better prices later, which ties up bank capital and can hurt profitability. Banks were left with at least $1 billion in debt on their books over the past 12 months, according to banks and analysis by The Wall Street Journal.

With banks less willing to underwrite the most leveraged loans, the flow of new takeovers has slowed. U.S. mergers and acquisitions announced this year have fallen 21% from a year earlier to $229 billion, according to data from Dealogic. The pullback has made it hard for private-equity firms, which use a lot of debt in their takeovers, to get deals done. Those that are getting done, many are built to minimize junk debt, or debt rated below investment grade.​New junk-bond sales are down 70% this year. (…)

While junk bond prices have rebounded in a broad market rally, debt-financed M&A and new sales of high-yield debt have yet to pick up. (…)

SENTIMENT WATCH
U.S. Stocks Rise, S&P 500 Joins Dow Average to Erase 2016 Losses

And yet, as Bloomberg reports,

investors of virtually all types have sold more stock than they’ve purchased, according to Bank of America Corp. In the week ended March 11, the bank’s hedge fund, institutional and private clients sold $3.7 billion, the most since September and the seventh consecutive week of withdrawals, the company said in a note last week. Net sales by institutions were the second-biggest since the bank began recording the data.

True, small investors remain cautious:

image

image

But some people have been buying as this other Yardeni chart shows:

image

BofA might be having a market share problem. Members of the National Association of Active Investment Managers have been increasing equity exposure in recent weeks:

Transport Stocks Signal Markets on Track

(…) The Dow Jones Transportation Average entered bull-market territory on Thursday, rising 22% from its Jan. 20 low through Friday, and rallying to post nine consecutive weeks of gains. The Dow Jones Industrial Average has increased 12% since Jan. 20.

It is a sign of a new outlook from investors, who spent the early part of the year selling stocks tied most closely to the fate of the economy, sending the transportation index to a two-year low. At the same time, it is the latest example of a rapid and extreme shift in the market, which has made some investors skeptical about the potential for further gains.

Investors watch the index closely because it includes freight carriers such as Kansas City Southern and Union Pacific Corp., along with airlines and shippers such as FedEx Corp., that many consider bellwethers for economic growth. (…)

Part of the reason the stocks are in demand: Improving data on freight moving through ports, airlines, railroads and trucking companies are helping to calm investors’ growth worries. (…)

Some observers of the century-old Dow Theory, however, are waiting to see more. The theory holds that investors should buy if the Dow Jones Transportation Average and the Dow industrials both rise above previous highs. (…)

Contact: edgeandodds [at] gmail.com