Transports Regain Momentum
On January 28, 2011 the highly followed Dow Jones Transportation Index closed below the important daily chart 50 moving average. Often when a stock or index closes below the daily chart 50 moving average it is viewed as a sign of weakness. It is important to note that since that time the Dow Jones Transportation Index has recaptured the daily 20 and 50 moving averages on the daily chart. This chart pattern that was weak in late January is now back in an uptrend and showing strength. Investors can trade Dow Jones Transportation Index by using the iShares Dow Jones Transport. Average ETF(NYSE:IYT).
Other leading transportation stocks that continue to be strong are United Parcel Service Inc.(NYSE:UPS), CSX Corp.(NYSE:CSX), and FedEx Corp.(NYSE:FDX). As long as these leaders remain above their 20 and 50 daily moving moving averages the transportation sector could continue to climb.