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TFC Commodity Trading Forum

Something Has Got to Give: Durable Goods & Stocks *PIC*

Here is a chart of new durable goods orders -- top --and the S&P 500 on the bottom. In 2008 stocks led the way lower while in 2000 durable goods topped 2 months before stocks corrected. Currently durable goods topped in July of '14 and have been lower for 6 of the last 7 months. Before you get too bearish on stocks though realize that there is a powerful Spring seasonal for the U.S. Economy that is just kicking in. Volume into stocks is also much higher than it was during past cycles meaning it takes longer for the momentum to wane. Markets are like ocean liners...they take a lot of distance and time to turn around. Stay tuned; this ain't rocket science and they haven't repealed the law of gravity just yet either...