×

Could Buffett’s Bet Trigger A Technical Rally?

After looking at the action in transports, investors are wondering if Warren Buffett may have sent the bulls off to the races!

Specifically, the Dow Jones Transportation Avg shot higher on Monday as investors gobbled up railroad stocks after Warren Buffett’s bullish bet on BNI. Union Pacific , Norfolk Southern and CSX all benefited from the tailwind generated by Buffett’s purchase.

That probably doesn’t surprise you. But this might.

Buffett’s bet is so bullish that the momentum “generated a sharp breakout that ruptures a down trend in the DJ Transportation Index set in on Oct. 20,” writes the WSJ.

Some market watchers have been keeping an eye on that index as well as the industrial average for clues about the future of the broader stock market – and this move could be an inflection point.

According to Dow theory, a market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high and then it is accompanied or followed by a similar advance in the other.

Did Warren Buffet just send the bulls off to the races? What do you think? We want to know!


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On November 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Owns (BCR): Finerman Is Long (BAC) Calls: Finerman's Firm Is Long (BAC) Call Spreads: Finerman's Firm Owns (BAC) Preferred: Finerman's Firm Owns (FLS); Finerman's Firm Is Short (FLS)Calls; Finerman's Firm Owns (MSFT); Finerman's Firm Owns(NOK); Finerman's Firm Owns (PBR); Finerman's Firm Owns (PDE); Finerman Owns (PDE); Finerman's Firm Owns (RIG); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Is Long (TGT); Finerman's Firm Is Long (WMT); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (UNG); Finerman's Firm Is Short (USO); Seymour Owns (AA); Seymour Owns (AAPL); Seymour Owns (BAC); Seymour Owns (EEM); Seymour Owns (SBUX); Seymour Owns (F); Seymour Is Short (FXI); Seymour Owns (POT); Terranova Owns (GS); Terranova Owns (RIMM; Terranova Owns Dec. Gold Futures; Najarian Owns (HGSI) Call Spread; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TEVA) & (TEVA) Call Spread; Najarian Owns (WFR) Calls; Najarian Owns (YHOO) & (YHOO) Puts

For Cliff Gallant
Gallant Owns Shares of (BRK.A)
KBW expects to Receive Compensation From (BRK.A)

For Pete Schiff
Schiff is Short the Dollar
Schiff Owns Gold

For Whitney Tilson
Funds Managed By Whitney Tilson Are Long (BRK.a) & (BRK.b)


CNBC.com with wires