9199.65
That's the number we want to see surpassed on the Dow Transportation Average.
The night of Donald J's election as commander in chief of the USA, stocks went totally nuts. News economic people were decrying the end of the bull market. Then, low and behold, nothing happened. literally.
Then a rally in both indexes started. Welcome to the wall of worry. We are not at euphoria yet, but what I do see is a convincing breakout in the Transportation stocks.
Have a look
The price labels shown here are the intra-day highs and lows. What we want is all time closing high. That number is the one above.
And here's the Dow, which is already surging to new all time highs.
There are two possible situations that could unfold.
- Both indexes confirm new all time highs, which signifies the continuance of the bull market, and thus a strong buy signal.
- The transportation index retreats before hitting new all time highs, which signifies deep problems, and signals at least a hold until a clearer picture emerges. Buy on dips at your own risk.
Here's what I don't want to see - the Transportation index surging to new all time highs while the Dow fails to confirm over and over. That would not be good.
Until that happens, I am a participant in this market despite the day-to-day noise of high frequency trading and news channel analysis.
Happy investing.
