MarketWatch First Take Archives
Sept. 21, 2012, 4:35 p.m. EDT
Do shaken transport stocks signal a sell?
Commentary: Rough week for FedEx, railroads rattles Dow Theorists
By MarketWatch
SAN FRANCISCO (MarketWatch) — Did you feel that little wobble in the stock market this week?
While the Dow Industrials cruised along with a series of modest gains, the wheels were coming off transport stocks.
For those who pay close attention to the old-school Dow Theory, that means it’s time to pull over. There’s trouble ahead.
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The transport sector is typically seen as a leading indicator for the broader equities market. It features prominently in the Dow Theory, one of the oldest market timing tools out there.
According to the basic version of this theory, if the Dow Jones Transport Average fails to confirm the strength of the Dow Jones Industrial Average, the market is headed for a correction. Industrials hit a fresh high Sept. 14 of 13,682 points. Dow transport stocks not only failed to confirm the gain, they lurched decidedly lower.
More: http://www.marketwatch.com/story/do-shaken-transport-stocks-signal-a-sell-2012-09-21
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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