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On the weekly chart for crude oil there is a clearly defined uptrend channel; the bottom line is where the crude price is now. Big week coming up; if crude goes down a little, chartwise it could go down a lot.
Probably not that many Canadians are aware of it; but the Dow Transports have recently given a clearly defined sell signal.
For us. the Dow Theory is enormously important; it is now about 115 years old. This Theory gave a buy signal in the spring of 2003 and until now all one had to do was sit back and watch the stocks go up, especially in Canada. Under the Dow Theory we had over three years with the primary trend being up; a bull market. But now what ?
The sell signal by the Transports now has to be confirmed by the Industrials; hasn't happened yet. But there are a lot of bears out there; maybe they will turn out to be right; but don't jump the gun. We will be watching the action of the Industrials every week, and indeed, every day.
The " killed in the line of duty " is about 10 times higher for Canadian troops in Afghanistan than it is for American troops in Iraq. Not too good; we should get out. Our understanding is that 12 Canadians have lost their lives in one month; as the Americans have 60 times more service persons in Iraq, a similar percentage for the U.S. in Iraq would be 720 in a month or 8600 per year compared to 144 per year for us.
But the Americans are only losing about 720 per year; about one tenth compared to us.
We are in serious dificulties in Afghanistan.
As you know some Mounties don"t have to wear the traditional uniform; they can wear a turban. We have never met a Canadian who favours this transgression.
It is sad that the judiciary can be that disconnected to mainstream Canada. !
