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.