If you're looking for confirmation of a "bullish on stocks" stance right now, make sure to check out the Dow Jones Transportation Average…
More than 100 years ago, Wall Street Journal founder Charles Dow set the foundation of modern technical analysis – the "art" of watching stock price trends.
One of Dow's major tenets holds that the stock market is healthy when both the manufacturers of goods and the transporters of goods are doing brisk business and enjoying rising stock prices. Dow called it a "confirmation" when his Industrial Average and Transportation Average reached new highs together.
Below is a chart of the price action in the Dow Jones Transportation Average over the past year. This index measures the stock price performance of America's most important railroad, trucking, and shipping firms. As you can see, this index is enjoying a bullish series of "higher highs and higher lows" and is sitting near its yearly high.
Sure, there are many things out there to worry about (government debt and government debt being the two biggest), but until major indexes like the Dow Transports start breaking down, we have to say, "Things can't be all that bad."
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