|
| All five examples show a strong corner 1 to corner 4
diagonal trend. Three - GM, GE, and Boeing - are components of the Dow, so we
expect this correlation. |
| Ford and Lowes are not components of the Dow, but in general we can understand the
correlation between these and the Dow: when the economy is healthy people buy more
cars and repair their houses. |
| Also, most of these exhibit sub-diagonal (the diagonal of square 2) and super-diagonal
(the diagonal of square 3) trends.
Any combination of movements between 1 and 4 can be followed by either bin 2 or bin 3. |
