Railroad and Trucking…keep traveling higher!

 

What ANGLE we look at things can be really important.  The Dow and 500 index are facing resistance, so were Railroads and Trucking in the chart below.  I created a post on 9/20, asking if Railroads and Trucking companies were going to “haul the economy to better times.”  (see post here)   Highlighting “bullish ascending triangles.”

 CLICK ON CHART TO ENLARGE

Below is an update in these two key transportation indexes.

 CLICK ON CHART TO ENLARGE

As I shared in the top chart, ascending triangles lead to higher prices roughly 65% of the time.  Looks like the “Power of the Pattern” came true again.  

Why share info like this?  Investors can play these sectors and breakouts in the Transportation stocks represents positive price action, along with FCX  (see post here) and the high yield mutual funds (see new message, high yields).

It is positive price action in these areas that makes the overhead resistance in the broad markets look vulnerable to allowing breakouts!

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7 Comments

  1. Hi Kimbler.
    The VALE ADR (Companhia Vale do Rio Doce – Nyse), This is a rally in the weeks and months and we could not determine a goal for the paper.

    If possible do a comparative analysis, we would appreciate.

    Cheers,

    Storms – Brazil

  2. Love the posts. This was a good refresher after that smack in the face the market gave us yesterday.

  3. What does this indicate about the economy? Hard to say if anything. The Ceridian-UCLA Diesel fuel (Pulse of Commerce) index declined 0.5 percent in September and 1 percent in August. It was the first consecutive monthly decline since January 2009 (Source: Calculated Risk, October 13,2010).

  4. The US economy hasn’t gotten above stall speed for 3 years now, but what does it matter? When I own stocks, I care about earnings and my assets performance, that alone. We can be right or we can be profitable.

  5. wiiliam – I was just addressing the question Chris posed on the chart. The index is relevant to trucking and indicates the economy has stalled since May. Perhaps the rise in these transportation indices is due to the anticipated effects of QE2? Who knows?

  6. Wonderful blog! I truly love how it? s easy on my eyes as well as the data are well written. I am wondering how I can be notified whenever a new post has been made. I have subscribed to your rss feed which need to do the trick! Have a nice day!

  7. Ernest Hemingway~ Theres nothing noble in being superior to your fellow men. True nobility is being superior to your former self.