Red-hot chipmaker AMD pops on surprise Q2 profit >>> READ MORE

Buy Transports Now for the Short and Long Term

IYT's remarkable breakout supported by volume, new buy signal


iShares Transportation Average (IYT) –This ETF tracks the results of an index composed of U.S. stocks in the transportation sector.

It isn’t often that I recommend an ETF as the Trade of the Day, but the remarkable breakout of the Dow transports should have a major impact on the U.S. economy and shouldn’t be ignored as an investment itself. 

The transports’ rally and breakout resulted from a four-week base, sometimes called a “flag” formation. In addition to the double-top and flag, the breakout is supported by a new MACD buy signal and volume.

The target for the breakout is $146, but investors would be wise to add IYT to their long-term portfolios.

 IYT Chart
Click to Enlarge

Chart Key

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC