This 100-Year-Old Indicator Is Signaling a Robust Economy

I'm on the road for work this week... I used Uber to get to the airport from my house. Then, I caught a Southwest Airlines flight. And once I got to my first destination, I took another Uber from the airport to the hotel. [Chaikin PowerFeed]( This 100-Year-Old Indicator Is Signaling a Robust Economy By Pete Carmasino, chief market strategist, Chaikin Analytics I'm on the road for work this week... I used Uber to get to the airport from my house. Then, I caught a Southwest Airlines flight. And once I got to my first destination, I took another Uber from the airport to the hotel. During my trip, an Uber took me into the office each day. On the way out, that's also how I got to the train station. Then, I hopped on a train and rented a car at my next destination. In just two days, I used most of the major transportation services. Now, I know I'm not single-handedly moving the Dow Jones Transportation Average. But I can tell you one thing... Transportation is booming right now. My airplane and train were packed. People filled the rental-car location at the airport. And a couple of the Uber drivers told me they've been going all over the place. [Back in April]( I explained that the so-called "Dow Transports" was one of the last hurdles to jump before a big move higher in the stock market. And as you'll see today, it paid off... Recommended Links: [Must-See: Incredible New Stock-Predicting AI System]( The financial industry is the next in line to be completely disrupted by artificial intelligence("AI"). And leading the charge is a groundbreaking AI algorithm called An-E. What makes An-E so revolutionary? Two things: 1) It can predict stock prices four weeks into the future with incredible accuracy... and 2) It's specifically designed for the everyday person – NOT Wall Street. You can begin using it today on 3,000 stocks. [Click here to see it in action](. [A Massive Wave of Bankruptcies Is Coming]( While the stock market hums along, a much bigger (and more important) market is flashing a huge warning today. It will definitely affect stocks... housing... and the entire economy. Ignoring this signal would be a big mistake. But billionaires (and some of America's top analysts) LOVE this kind of turmoil. That's because it's a chance to buy world-class investments for pennies on the dollar. Not to mention, it's a rare opportunity for you to see 700%-plus gains based on history. [Get the full story here](. The following chart shows the two main parts of the "Dow Theory" that we talked about in April – the Dow Jones Transportation Average and the Dow Jones Industrial Average. Take a look... [Chaikin PowerFeed] Now, some readers will recall a key point I made about this chart in April... If the Dow Jones Industrial Average and the Dow Jones Transportation Average make new highs together, it triggers this "continuation of trend" indicator. And as I said back then... It means the economy is healthy. And in turn, it's further proof that stocks are headed higher. In other words, it would be an "all clear" indicator for us. Since then, both indexes have moved to "recent highs." They haven't made new all-time highs yet, but the trend is headed in that direction. That tells me we can expect more gains ahead. After all, that's how trends develop. In short, the current setup proves the Dow Transports are alive and well. And judging from my own experience over the past week, I can see why... Demand is still healthy. And as folks keep traveling, that will continue to be the case. Even better, many transportation stocks are hitting new 52-week highs... Shipping leader FedEx (FDX) and American Airlines (AAL) are some recent examples. And just yesterday, railroad Union Pacific (UNP) soared 10% after a strong earnings report. That's usually an indicator of strong economic growth in the U.S. economy. Said another way, it's a futile endeavor to fight the trend of the American people. And with new highs in sight for these two indexes, the Dow Theory is playing out in front of our eyes. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.70% 13 14 3 S&P 500 -0.66% 187 259 53 Nasdaq -0.24% 62 31 6 Small Caps -1.30% 627 978 336 Bonds -1.94% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +2.43% Communication +1.90% Materials +1.12% Staples -0.07% Health Care -0.07% Utilities -0.37% Information Technology -0.38% Industrials -0.54% Discretionary -0.62% Financial -0.73% Real Estate -1.12% * * * * Industry Focus Health Care Services 9 36 15 Over the past 6 months, the Health Care Services subsector (XHS) has underperformed the S&P 500 by -9.22%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 6 slots over the past week. Indicative Stocks [rating] AHCO AdaptHealth Corp. [rating] BKD Brookdale Senior Liv [rating] MODV ModivCare Inc. * * * * Top Movers Gainers [rating] ALGN +13.38% [rating] TXT +11.87% [rating] LRCX +9.28% [rating] RCL +8.72% [rating] STX +7.21% Losers [rating] EBAY -10.53% [rating] CMG -9.81% [rating] EW -9.78% [rating] LUV -8.94% [rating] ROL -8.88% * * * * Earnings Report Reporting Today Rating Before Open After Close AON, TAP, CNC, GE, HLT, LYB, MLM CTSH, HIG XOM, TROW, SO, PG, PCG, MA, CVX, CL, CHTR, CHD, BEN BIO, GILD, HOLX NWL VFC No earnings reporting today. Earnings Surprises [rating] INTC Intel Corporation Q2 $0.13 Beat by $0.16 [rating] FSLR First Solar, Inc. Q2 $1.89 Beat by $0.93 [rating] WY Weyerhaeuser Company Q2 $0.32 Beat by $0.11 [rating] DXCM DexCom, Inc. Q2 $0.34 Beat by $0.11 [rating] DLR Digital Realty Trust, Inc. Q2 $0.22 Missed by $-0.15 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. 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