From Grant's Interest Rate Observer

Bull sightings

Courtesy of today’s Wall Street Journal: the old-school, tried-and-true (to its proponents) “Dow Theory” is signaling higher equity prices.  The theory, which holds that new highs in the Dow Jones Industrial Average should be confirmed by corresponding highs in the Dow Transports in order to portend a healthy bull market,  has flashed a yellow light to investors through the spring as the broad Industrial average repeatedly made new highs without confirmation from the Transports.  With the latter group riding an 11% advance from mid-May, both indices notched fresh highs on Friday.
File it under: For what it’s worth.