OUTLOOK

"Transports Rally as Expected"

1/25/2008

In our Outlook on 1/7/08, we stated that the Dow Jones Transportation Average was due for a rebound rally.  Within 4 weeks, we expected the index to rally to 4500 or more from its low of 4225.67 on 1/4/08.

Our forecast was correct.  The Dow Jones Transportation Average rallied over 4500, reaching a high of 4595.69 on 1/25/08.  We have exited our position to lock in profits.  The combination of a rebounding stock market and falling crude oil prices has helped push transport stocks higher.

Mark Yuan, CFA