I’m Calling The Top In The Transports
Transportation companies are the engines of the economy, ensuring that producers can get their goods to companies and consumers on demand. But as the economy slows down and corporate earnings decelerate, less goods will be need to be delivered to companies and consumers. But lets just forget the fundamentals and what we see on the news. The charts are telling me the top is in on the Transports. The iShares Dow Jones Transportation, IYT, is exchange-traded fund that is highly correlated to the Dow Jones Transportation Average. The index includes companies within the trains, planes and auto…I mean trucking sector. The 22 holdings within the ETF are the following:
On the monthly chart, price broke the up trendline that was established in 2016.
On the monthly chart, last month's candle was rejected by the trendline.
But the kicker is profitability for the airlines is better than ever.
Thus, the next step is to look for some stocks in the sector to short, so stay tune.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.Published by Rolland Thomas
on
Makes sense... so many fundamentals need to continue stronger to support this industry and I can’t see it after the run they have had. It only takes one price war for the airlines to go under again!
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I'm seeing more and more break downs in the Markets...I'm starting to lick my chops at the opportunities.
Good ol' Dow Theory about transports and industry in work. Just so many indicators out there showing we are in for a crash.
Stack your ammo for it.
Just call me Rambo....lol.
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Informative analysis 👍
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Informative analysis 👍
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So grosssssss
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