Transports Struggle Despite Higher Market
One of the most important stock sectors that any trader or investor can follow is the transportation sector. Many investors will look at the transportation sector as a sign of market strength and economic expansion when the sector trades higher. On the flip side, when the transportation sector trades lower it is usually viewed as a sign of economic contraction. Today, the iShares Dow Jones Transport ETF (NYSEARCA:IYT) is trading lower by 0.09 cents to $91.96 a share. This ETF is not really down that much today, however, it is struggling to catch a bid when the Dow Jones Industrial Average is trading higher. Another way to view it, the transports should lead the markets higher and not lag them. Short term traders can watch for intra-day support around the $91.40, and $91.00 levels.
Some leading transportation stocks that are coming under selling pressure today include FedEx Corp (NYSE:FDX), Kansas City Southern (NYSE:KSU), and China Eastern Airlines Corp. Ltd. (ADR) (NYSE:CEA). The transportation sector is a very important index for every trader and investor to follow. It is one of the ways that the market talks to us.
Nicholas Santiago
InTheMoneyStocks.com
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