Hi (Chuck et al),Interesting suggestion from Norcini on this -...

Hi (Chuck et al),

Interesting suggestion from Norcini on this -

....... Bluntly stated, it is my opinion that America's new role seems to be better designated as the money changers in the temple of the world economy. We supply the necessary financing to the rest of the world to modernize their economies so that they can all-the-better compete with us. We have become the kings of paper with the benefit having largely gone to the large New York based investment banks such as J. P. Morgan and Goldman Sachs, et al. In my opinion therefore, the performance of this sector has perhaps become more important as a leading indicator in confirming Dow direction than the venerable Transports. Formerly, "made in America" goods would require transportation to move them from factory to distribution points. The health of the Transport sector was at that time very indicative as to the overall health of the American economy. Today, it seems that the transport sector is more busily engaged in moving imported goods from Asia and elsewhere around the world out of American ports to distribution points where American consumers can eagerly devour them. So while the transport sector may indeed show signs of health, it is not necessarily correlated to the health of the American economy anymore. This, if true, and I repeat that this is merely my opinion, would render Dow Theory as it has been historically applied, a lot less relevant than it has been in the past. As a matter of fact, it might actually be a good idea to use the Financial Sector in place of the Transport Sector as a method for applying Dow Theory. It would better reflect the changes of the modern world. We will simply have to see. ......... .

The full article (which is interesting for mine) is at http://www.gold-eagle.com/editorials_04/norcini081704.html .

dub.