Diamonds and Dogs


The Dow Jones Transportation Average is the dog of the day, dog of the week, and dog for the year. While the other major averages are making new all-time highs, the Dow Jones Transportation Average is making new lows for the year down 7%. Each segment of the average is facing different challenges. Lower coal and oil demand is hurting the railroads, increase competition is hurting the airlines, while the truckers are facing their own demand issues. Dow Theory says a real bull market is led by new highs in both Dow averages.  So far in 2015 that has not been the case.

John Deere (DE) ran higher today up 4% closing in on its all-time high thanks to earnings and forecasts for continued growth through the remaining fiscal 2015. The better than expected guidance was due to demand for its construction equipment that mitigated the impact of declining sales of its signature green tractors and combines. Heading into the Memorial Day weekend I suspect a number of us will be riding a John Deere at some point.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.