The Transports Index made a new closing high y'day. Last time we observed the Transport index was at 50 DMA while the Industrial was at new high. The main observation was that it was due to high crude effect. Post here.
Now with Tran index closing at new highs it is bullish confirmation as per Dow theory principle.
Way to go Dow.
Now since US indices is in bull phase what could be the implications for emerging markets esp Indian markets.
This is a whole macro trade here. My call is to confirm the earlier buy of companies exporting to US/Europe. That call was in mid Dec. Link here.
The IT sector coupled with Gems exporting and a few commodities centric sector can do well based on this macro play.
Now with Tran index closing at new highs it is bullish confirmation as per Dow theory principle.
Now since US indices is in bull phase what could be the implications for emerging markets esp Indian markets.
This is a whole macro trade here. My call is to confirm the earlier buy of companies exporting to US/Europe. That call was in mid Dec. Link here.
The IT sector coupled with Gems exporting and a few commodities centric sector can do well based on this macro play.
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