TRANSPORTATION LEADERS -- AMERICAN EXPRESS LEADS DOW HIGHER -- IBM BREAKS THROUGH 90

TRANSPORTATION LEADERS... Today's strength in transportation stocks is coming from air freight, rails, and truckers. The top transportation gainer today is CNF Transportation. Chart 1 shows that stock soaring to a new six-month high on massive volume. Yellow Corp is getting close to an eleven-month high. Burlington Nortern is moving up toward its summer highs. Other leaders are Federal Express and Norfolk Southern.

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AMERICAN EXPRESS LEADS DOW HIGHER... Our earlier update talked about financial stocks leading the market higher today. The top Dow percentage gainer is American Express. Chart 4 shows AXP breaking through its summer high. Chart 5 puts that breakout in better perspective. The weekly bars show that AXP has just broken through major resistance at 45. That puts American Express at a thirty month high.

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IBM BREAKS THROUGH 90... We recently showed IBM testing chart resistance at 90 and expressed confidence at an eventual bullish breakout. The daily chart shows IBM decisively through its May peak at 90. The weekly chart is even more impressive. Chart 7 shows that IBM is now trading at the highest level in eighteen months. With help from American Express and IBM, the Dow is trading at a new recovery high at midday.

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