Thursday, May 3, 2007

Dow Theory Sends `Buy' Signal for U.S. Stocks as Transport Shares Advance

(Bloomberg) -- The oldest gauge of U.S. transportation stocks reached a record last week, with a boost from Warren Buffett. For Keith Wirtz at Fifth Third Asset Management, it's a sign more gains are ahead for the overall market.

Wirtz adheres to a 19th-century indicator developed by Wall Street Journal co-founder Charles Dow. When Dow Jones & Co.'s transportation and industrial averages set records at the same time -- as they did April 25 -- a healthy economy and rising market will follow, Dow's theory goes.


Read more at Bloomberg Exclusive News

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