Have The Transports Have Bottomed?

Richard Russell thinks we've seen the bottom in transports. The stock market is looking to go higher as everyone is calling for the top.

Transports Have Bottomed

Wednesday, June 03, 2015

By Richard Russell

The stock market continues to confound serious and seasoned investors. History is being made as investors tear their hair out while attempting to position themselves in this strange environment.

Transports have tested their lows and are moving higher. This action calls for a bottom in the Transports. With the Transports bottoming, the entire stock market is set to move higher.

 The dollar is down hard and surprisingly, gold is lower. With the stock market stronger across the board, it may be that the Fed will take heart and produce an interest hike (probably a very small one) later this year. The stock market is telling us that the economy is improving.

Today many people are asking if there is a bubble and if so, where is it? My answer is that the bubble is in the production of fiat currency and I keep one proverb in mind, “no tree grows to the sky.”

 I’ve never seen a top formed when so many advisors are searching for a top.

Many smart investors who have access to unlimited funds have turned to the auction markets and real estate in New York. In the auction markets we are seeing one of a kind items going for astoundingly high prices.

Recently, the Christie’s auction house set a record of one billion dollars in sales during a single day. A 26 carat diamond sold for over $100 million, a record for a single gem stone. A Picasso painting sold for over $140 million, a record price for any item on auction. Prize apartments have sold for over $100 million while they remain vacant.

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Late Notes -- Fifteen minutes before the close, Industrials are up 104, Transports are up 100, and the Nasdaq is up 20. The stock market likes today’s action.  Gold is down 9 to 1185 and silver, which is acting better than gold, is down 0.29 to 16.51. My interpretation is Transports hit bottom.

Transports Have Bottomed - Wednesday, June 03, 2015

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