Another day in the land of Central Bank bubbles.
According to Bloomberg, transportation stocks have rallied more than 8 percent in a week, realigning them with industrials at new highs in a coupling that is one of the market’s oldest bullish technical indicators. According to the century-old Dow Theory, simultaneous records in the groups trigger a buy signal for U.S. stocks. Optimism that changes in U.S. tax policy will benefit the industry reignited the Dow Jones Transportation Average on Monday, pushing it back to an all-time high along with the industrials gauge.
But at the same time, the Hindenburg Omen keeps … omening?
And crypto-currency Bitcoin keeps bubbling.
Yes, another day in the land of Central Bank-generated asset bubbles.
Janet Yellen and The FOMC creating asset bubbles. Here is a video of her last speech to Congress.