I read an interesting analysis on DOW Theory by Tim Wood this...

I read an interesting analysis on DOW Theory by Tim Wood this morning, where his continuing analysis show that we remain in the existing bearish primary trend.

As a student of the market, I would like to suggest that the DOW transports are perhaps a lagging indicator to the Baltic Dry Index. IMO The Baltic Dry Index data show leading economic recovery and DOW transports follow once it is seen that economies are picking up. Furthermore, it must not be forgotten that Trillion of dollars are being spent in ‘stimulating’ economies and this inevitably leads to major stock market rallies. Other factors contributing to the recovery are the lowering TED Spread and increased money supply!

I will be watching with interest the upcoming pivotal point, as the market sets up on news of the Obama stimulus package.