| | |

THE TRANSPORTS

ByGary Kaltbaum

Since many are asking:

TRANSPORTS down 180 as we write this. Not a pretty picture. First off, we are not DOW THEORY people. DOW theorists say  the DOW and TRANSPORTS need to confirm each other and if one sways badly, it augurs trouble ahead. We are not so sure. We just believe you stay away from this area. Many AIRLINES smoked. RAILS very suspect and important FDX rolling over. This should not get you overall bearish. Other things are working. Just more rotation. Can the TRANSPORTS leak into the rest of market? Sure it can…but until it does, quite the folly to ignore what is working.

And BOEING (BA). The stock is up an amazing 28 points in less than 2 days on raised guidance. We guess that’s about 180 DOW points. Wow! Too extended but could have said that yesterday. Bull market in manufacturing airplanes.