Dow Transports Break Out To All-time Highs

JC Parets
October 8, 2020

After 33 months of zero progress, the market is proving that it is finally time for Transportation stocks to move forward. We call these big bases. It was a well-deserved consolidation in prices after a historic run throughout 2016-2017.

This all seems perfectly normal to me. Not sure why some media outlets are telling investors about turmoil not seen since 2008. Maybe they're looking at the charts upside down? Or blindfolded perhaps?

Here is the second most important stock market index on planet earth breaking out of a long consolidation to new all-time highs:

We've been on board the Transportation train for for a while, and for good reason. This group has shown a ton of relative strength and positive momentum characteristics. I'm not sure what's not to like?

I encourage you to go through all 20 stocks in the Dow Jones Transportation Index. Go figure out who is driving this Index.

You can find all our Trade Ideas here (Premium). They've been working. I think they continue to moving forward.

And one last thing. I talk about the Dow Transports as the 2nd most important index in the world. The #1 is Papa Dow: Dow Jones Industrial Average.

You never want to fight Papa Dow. And when Transports are breaking out of bases to new all-time highs, Papa Dow is usually not too far behind.

Let's see....

 

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