For those who do not pay attention to reality and prefer the unicorn poop produced by the pump and dump media, there is a dark warning sent by the stock market today which should be a focus of the macroeconomic gurus across the US.
Several major US trucking companies had what can only be called an unmitigated disaster of a day.
Let’s start this chartfest with the Dow Jones Transportation Index which only held the 50 and 200 day moving average because of a few airlines, especially Jet Blue:
Not a pretty picture.
The truth it was the trucking companies that provided the large impetus to the downside and some of the biggest players turned in disastrous performances today.
Let’s start with the biggest intermodal, last mile, logistics, and truckload carrier JB Hunt:
A slow steady day of selling only rescued at the end of the day. The fact that the 200 day moving average is far away and 160 is the magnet means that this stock is not only probably going to break down hard, but a warning that after this holiday retail season, the recession’s teeth will be felt.
XPO Logistics, one of the largest consolidators in the nation had what can only be described as an epic meltdown in trading today.
Stocks like this do not gap down in this manner during a bull market nor non-recessionary periods.
Knight-Swift Transportation was not much better on the truckload front.
In technical terms, this is a “no bueno” stock chart.
Meanwhile in the LTL arena, Old Dominion decided to send its own warning.
High volume. Gap down. Hanging man close. Good times. It would appear that the June lows are about to be retested.
The bigger picture is the sum message from all of those stocks above:
The United States is in or about to be in a major recession.
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We are in a recession. It began with the Covid lockdown and has persisted. The Fed has tried to hide this fact by magically creating an average of 1.5 TRILLION Dollars per year since then. Such insanity comes with a price. The bill for that insanity is due and payable. The result will be a collapse, one that makes the Great Depression look like childs play. It's now inevitable, the only question when. And it can't be postponed forever. Of course as long as their is still value to be looted the looters in power will keep propping things up. But that can't continue forever.