I have geared my Transports allocation toward the rails this year.
The Dow Industrials in particular produced a solid spurt higher, but the average stock has underperformed the indices.
The market is anticipating higher rates and some inflation and that likely will matter at some point, but not yet.
I am sick and tired of reading stories about how buybacks inflate earnings and are, therefore, phony.
Apply the lessons of that boring trading year to today's market.
The Chinese government could intervene to support its markets, but the charts suggests China's key stock index could decline further near term.
Analyst downgrades and mind-boggling P/E ratios do not matter in this current market.
The 2-year Treasury yield, TIPS and gold all indicate the Fed shouldn't be forced to put a clamp on inflation.
There's too much evidence of economic strength, so don't interpret these moves as a sign of a real slowdown.
Here's what the charts say on the beaten-down group.