CSX (a rail company) getting slammed, down around 9% today, thanks to all the problems in this atmosphere. This company kind of like the market overall, zoomed up and overpriced, so this is a perhaps a preview of what can happen with the overall market. Within stories on this is info about 2018 China goods stockpiles made by US companies before the tariffs coming to an end. Prices on goods only going up from here, pending a China US agreement of course.

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Sean Hyman
Sean Hyman

Editor

It got into a steep angled "bubble-like" move for several years. The risks showed up ahead of time on the chart with the huge distance the price got away from its 200-week moving average and its steadily declining RSI/MACD. That's what I like about long-term charting. It tips you off to what's likely to come, ahead of time...especially the distance of the stock price to its 200-week moving average and how far (historically) it is away from that moving average compared to what's typical for the stock.

Sean Hyman
Sean Hyman

Editor

Dow Transports have been in a downtrend for a while too. They were warning of landmines coming in individual transport stocks that hadn't been hit just yet.

Sean Hyman
Sean Hyman

Editor

These bubbles/risks aren't nearly as easily seen on daily, 1 year charts as they are on weekly, 10-year charts. Most investors rarely if ever look at those charts/time-frames, but its to their detriment.

Thankful
Thankful

100%, and it's just what you've been warning us about in the overall market.

Thankful
Thankful

That RSI and MACD are scarily similar to $SPX 10 year chart! Almost a carbon copy!