Transports Get Resuscitated

The Dow Jones Transportation Index has been one of the most volatile indexes that we have seen in quite some time. This index is followed by many investors as a sign of economic expansion and growth. If someone looks at a recent daily chart of the transportation index the chart resembles a cardiogram. The index has been in a wide trading range for the past three and a half months.

Today, the iShares Dow Jones Transportation Index ETFIYT is trading sharply higher by $1.87 to $92.70 a share. The IYT looks to have intra-day resistance around the $93.00 area. However, should oil begin to catch a bid and rally higher this could easily move the transport index lower intra-day. This index is directly effected by the high price of crude.

Other leading transportation stocks that are trading higher this morning are Delta Airlines Inc.DAL, United Continental Holdings Inc.UAL, and FedEx Corp.FDX. Should oil begin to rally higher it would be prudent to expect these leading transportation stocks to pullback intra-day.

Nicholas Santiago
InTheMoneyStocks.com