Replies to post #310696 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Joe, is it not possible that the airlines have become a very small part in the weight of the transports (only four of the 20 are airlines, three sub $10 and only LUV just a little above), and the like of FDX, UPS, UNP and YELL simply overshadow any losses in the four airlines? I don't know what the multiplier is, but a $1.5 rise in FDX and UPS over shadows a $.5 decline in all airlines, even though, percentage wise, the airlines declined more, than the rise in those two shippers. The strength of the transport simply indicates that the economy is "chugging along" and products are moved in the economy.

[gottfried]

Joe, I'm puzzled about the 2 month rise of the transports and have started to track that index to see if it relates to anything. I'm not a DOW theory follower but understand they look at transports for confirmation.

Gottfried

[ranch hand]

JOE: Any chance that -- while the Admin is getting economy to survive/recover from 911 with all their stimulus (transportation up!), the admin is also using oil as a "govenor/moderator" to keep inflation from getting out of hand? The goal is stagflation at 3.5% growth for the next 10-15 years. That would explain why integrated oil is only pricing in $27-$30 oil while market is at $55-$57. Just "thinking like a manipulator". RANCH