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A Deal In Transports

Published 08/28/2014, 12:24 AM
Updated 07/09/2023, 06:31 AM

Finding absurdly high prices on securities these days is like shooting fish in a barrel, but one I’d like to point out in particular is the Dow Transports ETF (iShares DJ Transport Average Index (ARCA:IYT)). Transportation stocks have been on an incredible tear, and as you can see from the past 5+ years, they haven’t had even a modest dip since November 2012:

IYT

However, the prospect of a potential double top is at hand (and the stop-loss level is close enough to make it a low-risk bet). The PSAR indicator is still in buy mode, but the “dot-cross” could happen any day. I’d also point out that the RSI, shown beneath, is throwing a sell signal.

IYT Close

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