Buy Transports Now for the Short and Long Term

by Sam Collins | April 4, 2014 1:17 am

iShares Transportation Average (IYT[1]) –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

Endnotes:
  1. IYT: http://studio-5.financialcontent.com/investplace/quote?Symbol=IYT

Source URL: http://investorplace.com/2014/04/trade-day-ishares-transportation-average-iyt/
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