Chart of the Day – The Garbage Indicator

by Enis July 27, 2012 12:57 pm • Commentary

We’ve been beating a dead horse on the theme of slowing growth for some time now.  I’ve even brought up the word Recession a few times.  There are many reasons for our thoughts that growth fears will be at the forefront of the next few months, but today’s chart illustrates another reason.

First off, I wouldn’t put too much credence into today’s chart as it’s a very small indicator.  But it’s a light-hearted chart for a summer Friday.  Courtesy of Business Insider this morning, it shows the Waste Carloads on American Railroads vs. U.S. GDP over the past 5 years:



It’s had the steepest drop off since 2008, though I’ve never looked at this indicator before, so I’d take it with a grain of salt.

You can tell that I’m feeling chagrined about the market when I have to pull out the Garbage Indicator as the Chart of the Day.  As frustrating as it is, most of the indicators that I look at still signal lower prices ahead, so I’m sticking with my guns on the long put spread positions.