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Dow Jones 11000?

Despite weak job reports and lack of confidence in the economy (look at Fed Reserve talks of more Q.E. and people still buying gold as a safe haven), the Dow sits as of today at 10967. Historically, the stock market predicts economic conditions better than most economist out there, not to bash economists, but the stock market is a leading indicator of the economy.

With a lot of negative news afloat, there is one critical piece of information that is not as widely publicized as say ADP job report, which is intermodal traffic, or railroad traffic.The AAR, Association of American Railroads has just posted "another record week in intermodal traffic. The Association of American Railroads (NYSE:AAR) today reported that U.S. railroads saw the highest weekly intermodal volume for 2010 and highest container count on record for the second consecutive week."

A great lion share of American goods are carried through railroads, then trucks. Record activity of containers is good news and a good indicator of what is to come.
Looking at the weekly rail traffic charts from AAR.org:


Weekly Traffic of Major U.S. Railroads

Increases in traffic originating from many industries across the board. This is
strong compelling evidence for what is to come.


Disclosure: Long MOT, QEP, STR