Ted Weisberg on Dow Transports as a Positive Sign for the 2026 Market

Market Performance and December Trends

• 💡 The Santa Claus rally technically began in January, and despite recent 'squirly' days, it's been a good year overall.
• ⚠️ December is acknowledged as a tricky month due to tax-loss selling and profit-taking strategies, which can cause temporary market dips.
• 📈 While tech stocks have lost steam after leading for years, the broader market breath, including financials, airlines, and pharmaceutical stocks, has been positive.

Dow Transports as a Leading Indicator

• 🚀 The most significant positive sign for the future market is the Dow Transports making new highs.
• 🎯 According to Dow Theory, when transports lead, the broader market is expected to follow positively within the next 3 to 6 months.
• 📊 Despite December's fluctuations, the strength in Dow Transports suggests a promising market outlook for the coming quarters.

Sector Performance and Outlook

• 📉 Currently, many sectors like financials, airlines, and quantum stocks are showing weakness or are down.
• ➡️ However, the movement away from tech into broader market sectors like financials and airlines indicates a diversifying market strength.
• ✅ Weisberg remains optimistic about the market, not discouraged by the current tech pullback, viewing it as a natural market cycle.