It’s not every day people laugh when I tell them what I’m buying — but that’s been happening lately. And I think it’s worth talking about.
As you know, I talk to a lot of people throughout the day — professional traders, portfolio managers, analysts, authors, individual investors, family offices, journalists, and more financial advisors than you can count.
With that many conversations, you get a pretty good read on sentiment — what people are thinking, feeling, and fearing.
Lately, when I’ve mentioned that I’m buying Transportation stocks, the reaction has been the same almost every time: laughter. Actual, out-loud laughter.
Which, of course, only makes me want to buy more.
Here Come the Transports
You’re always hearing me talk about the importance of actually taking the time to count.
Humans are wired to look for shortcuts. It’s not just laziness — it’s biology. Our brains are constantly searching for ways to conserve energy and simplify decisions.
So don’t beat yourself up over it. Just recognize it, adjust for it, and overcome it. That’s how you separate yourself from the crowd.
Yesterday, we talked about market breadth — how it’s been improving and remains strong. We even took the time to count together.
With Transports, it’s the same thing. The Dow Jones Transportation Average has just 20 components.
How many people do you know who actually go through all 20 of those stocks every single week?
I can’t name any. And I talk to everybody.
Here’s what the Dow Jones Transportation Average looks like compared to the most important index of them all — the Dow Jones Industrial Average, which includes 30 stocks.
Twenty stocks in the Transports. Thirty in the Industrials.
If you want a solid read on the direction of the overall market, study those 50 names every single week.
Nobody does it. And everybody’s wrong.
If you can get the 30 stocks in the Dow Industrials right, you’ll get the market right.
And the 20 stocks in the Dow Transports tell you whether that strength is broadening or weakening — whether participation is expanding or contracting.
There’s nothing that can replace the simple act of going one by one, chart by chart, and marking each as “uptrend,” “downtrend,” or “sideways.”
That’s the work. And that’s where the truth lives.
The Added Bonus to Counting
Sure, we all want the big-picture, macro perspective. It’s incredibly useful to be on the right side of market trends — because fighting trends is an expensive habit.
We like the odds tilted in our favor, and you should too. Being on the right side of the trend is like being the house at the casino. Fighting it makes you the sucker getting “free” drinks all night.
But here’s the real bonus of ripping through these 50 stocks every week — the 30 in the Dow Industrials and the 20 in the Dow Transports: these aren’t just any names. They’re 50 of the most important companies in America, no matter how you slice it.
And when you go through 50 of the most important stocks in the market, week after week, something happens — you start generating ideas.
Sometimes, it’s individual names — a logistics company breaking out, or a trucking stock showing unusual strength. Other times, it’s entire groups — like Railroads or Airlines quietly leading.
Those observations often lead to trades in stocks that aren’t even part of the Dow averages — but were inspired by what those Dow components are doing.
It happens all the time.
So while they’re laughing, I’m busy counting. And what I’m seeing is a lot of stocks going up — and practically none going down.
That’s not “weakening breadth.” That’s healthy participation.
Here’s the full list:
These are the 20 components of the Dow Jones Transportation Average. I’ve been buying some of them over the past month — and plan on buying more. Especially with all the laughter I’m hearing.
And while we’re at it, don’t forget about the Dow Jones Industrial Average — the world’s most important index, and the other 30 stocks that complete our list of 50.
These are the names.
This is the cheat code.
Take the time, once a week, to go through each one.
Ask yourself where the majority are headed — and where the quiet strength is hiding.
Almost nobody actually does this exercise. I do it every week. And honestly, it feels like I’m cheating the system. That’s how valuable it is.
Try it.
Stay curious. Keep counting.
Because the ones laughing?
They’re not doing the math.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs