Cramer Quick Take: I Like the Breakout in Transports
NEW YORK (TheStreet) -- The old adage goes that you don't really have a rally until the transports confirm it, Jim Cramer told Lindsey Bell at TheStreet.com Thursday.The logic is that everything you make needs to be shipped, so until it hits the road, rails or air, it simply doesn't matter.
But Cramer said he's been losing faith in the transports as an indicator since the biggest item shipped by the rails is coal, and coal is in secular decline as the U.S. phases out coal-fired power plants.Shippers like FedEx(FDX) also aren't a good indicator, he said, as they're now levered to Europe. The airlines, too, are troubled now that oil prices are back on the move.
So with all that negativity surrounding them, Cramer said the fact that the transports could stage a rally at all is impressive and just could be a sign that our market rally is for real.
Watch the full Cramer interview here.
--Written by Scott Rutt in Washington, D.C.
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