The Traderszone Network

Published in TZ Latest News 1 October, 2016 by The TZ Newswire Staff

Transports Are on the Verge of Bullish Breakout — Rails Have Already Turned Up

Once again, transportation stocks appear to be on the verge of a bullish breakout. Chart 1 shows Transportation Average iShares (IYT) on the verge of breaking through their April/September highs. Their relative strength ratio (top of chart) also appears to have bottomed. I recently showed buying in airlines and air freight. Rails, however, have been the strongest part of the transportation group and are leading it higher today. As I showed yesterday, transports are now outperforming utilities which is a positive sign.

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