Dow Jones Transports and Crude Oil

I have a question for the elite community.

How is it that the Dow Jones Transports is the strongest index in the past 5 years in the world (That I know of) while crude oil has quadrupled? If any index should be effected by high energy costs it should be the Dow Jones Transports, right? What does this say about the two markets? What does it mean for the future of these markets? Is the transportation index pulling CL up with it?

5yr

 

The proper "conclusion" is that rising energy prices, along with copper and lumber, are indicative of a healthy economy. They can be passed along to consumers.

 

OR

It means that the I-banks are trying to paint a picture for the many dow theorists.

"D

 

supply and demand. There is still a commodities and minerals craze out there and people are willing to pay for them. I think the transports going to be feeling it from here on out though.

 

On a side note, you also have railroads in the $DJT and they benefit from high oil prices as they become more competitive compared to trucking companies.