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Transports!

Monday, February 05, 2007 | 09:00 AM

in Economy | Markets | Technical Analysis

We've been watching the Transports alot lately; We noted the Transports at Crossroads last week; this week, we took notice of Those Amazing Transports.

Historically, Markets have seen trouble when the Dow Industrials made new highs unconfirmed by the Transports. Last week's action in the Trannies now eliminates that concern. What would resurrect it? A pike in energy prices driving the Trannies back down -- and leaving a DJTA ~~double~~ triple top behind.

Note that the trasnsports themselves are not free and of potential headaches. Late last week, Dan Gross noted The mysterious trouble in the trucking industry.

Jim Cramer went even further. Never one to shy from controversy, Cramer stated that the strength in the Economy was "vastly overstated" by actual data releases (GDP, ISM, etc.) He he also stated the Trannies are running due to collusion amongst the rails and airlines over prices. Even more aggressive,he called the US Anti-Trust Department defunct, implying it has become a toothless tiger. If his bud NY Gov Elliot Spitzer ever becomes President, perhaps we will have anti-Trust enforcement again.

I'll be very curious to see what Richard Russell's take on this will be . . .

UPDATE February 5, 2007 10:17am

Here's a quick chart on the Trannies:

Break Out, or Triple Top?

>>

Sources:
Dow Theory Seems in Play for Some Bulls
Transportation Average Joins the Industrials At a High; More Gains?
E.S. BROWNING
WSJ February 5, 2007; Page C1
http://online.wsj.com/article/SB117062874434897614.html

DJTA Components
http://www.streetauthority.com/terms/index/transportation.asp

Dump Truck: The mysterious trouble in the trucking industry.
By Daniel Gross
Friday, Feb. 2, 2007, at 3:29 PM ET
http://www.slate.com/id/2158873