Richard’s Wisdom – “Both Averages Must Confirm”
Mary Anne and Pamela Aden’s Comments:
This week the Dow Jones Transportation Average hit a new 11 month high. This was a bullish sign and a big deal. Why? As you know, the Dow Transportations has been lagging behind the Dow Industrials, the PTI and the other stock indexes. Following the bear market in 2015, they've mostly been bullish, surging higher, but the Transports didn't join the party. This has been bothering us and signaling caution.
As you can see on the chart, for example, the Dow Jones Industrials has been rising and it hit a new record high on August 15. On the other hand, the Dow Jones Transportations has remained weak. It reached its record high in December, 2014, it then dropped 28% and, unlike the others, it's been slow to recover. Now, however, things are changing... The Transports has been perking up, showing signs ... Log in or subscribe to continue reading.