Friday, April 18, 2008

Transports Make A 7 month High




Last month I pointed out that there was a Dow Theory buy signal based on the transportation index showing bullish divergence compared to the Dow Jones Industrials. I also pointed out the head and shoulders bottom that was created in the transportation index.

Above is a daily chart of the transportation index (TRAN). The most likely upside target for this index would be the high from last summer. That's where I think we are headed.

5 comments:

Anonymous said...

What do you use to play transports?

AJAskey said...

The IYT ETF trades over a million shares a day and tracks the transports.

http://finance.yahoo.com/q?s=iyt

Anonymous said...

Thanks.

Elaine said...

Any thoughts about a target for DRYS? Thanks!

Elaine said...

Would DRYS be a good way to play the transports? Any ideas for an upside target?

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