• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
readtheticker

readtheticker

readtheticker

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

Contact Author

  1. Home
  2. Markets
  3. Other

Copper and Dow Transports Indicators of World Growth

Simon Baker of Baker Avenue Asset Management said that copper and Dow Transports are leading indicators for world growth. His firm uses a proprietary index he called the 'Baker Ave Market Sentiment Indicator (BAMSI)'. This indicator is a basket of over 4,000 stocks, measuring momentum and market sentiment. Currently the indicator is negative.

From Yahoo Ticker: 20110924 Extract

Baker notes the performance of copper, or "Dr. Copper" as it's called by market pros for the base metal's ability to predict economic action. Typically when copper is moving higher, or at least stable over $4, the economy is in at least okay shape. Copper is down over 17% in September, currently sitting somewhere in the mid-$3.00's.

Another portent of ill are the Dow Transports (DJT), as evidenced by the FedEx' (FDX) horrific quarter and warning this week. "If people aren't shipping then people aren't buying," notes Baker. For Dow Transport traditionalists, weak transports mean a weak economy, which means bad things for stocks.

 

 

Here is the BAMSI to mid 2009.

Looks pretty good Simon Baker, but we like the better than 80% accuracy of cycles that one can find in Copper and Dow Transports.

Transports : Post July 14 2011 Trucks and trians carry the goods so we must watch the transports

Copper posted 03/31/2011 Copper Ominous Forecast

As of today copper has falled from $62 to $42 and Dow Transports have fallen from $5600 to $4200. Mr Baker should also add Hurst cycles to his tool chest, what do you think?

 


Learn more on Hurst Cycles here 'Jim Hurst method'

 

Back to homepage

Leave a comment

Leave a comment