Monday, August 28, 2006
Sector Spotlight: Transports
I subscribe to the theory that says where the Transports go, the DOW will soon follow. Therefore, I feel very good about today's action, albeit on light volume, with the Transports up 2%.
Whether its the truckers, shippers or the railroads (I purposely exclude the airlines) they are all up nicely, today.
Bottom line: The health of the Transports instills confidence in money managers to put parked cash to work. I feel this sector (.TRAN) is breaking out; hence, I believe everything but retail is a buy right now. However, economic data due on Friday may derail this rally. Please keep that in mind.
The following Transports are showing some mojo:
CVTI +8%
CLDN +7.8%
PVX +6.8%
ODFL +6.5%
EXM +5%
QLTY +4.9%
JBHT +4.3%
SWFT +4.1%
USAK +4.1%
CHRW +4%
EAGL +4%
ACLI +3.5%
GWR +3.5%
NOTE: Many tech stocks are breaking out today, including RACK (+8.6%) and ANAD (+18.5%). Its also worth noting, a stock that I own, GI, got bought out today by WNR-- for a 14% premium. I feel all the refineries are good buys, especially smaller players, such as: ALJ, DK and HOC.
Whether its the truckers, shippers or the railroads (I purposely exclude the airlines) they are all up nicely, today.
Bottom line: The health of the Transports instills confidence in money managers to put parked cash to work. I feel this sector (.TRAN) is breaking out; hence, I believe everything but retail is a buy right now. However, economic data due on Friday may derail this rally. Please keep that in mind.
The following Transports are showing some mojo:
CVTI +8%
CLDN +7.8%
PVX +6.8%
ODFL +6.5%
EXM +5%
QLTY +4.9%
JBHT +4.3%
SWFT +4.1%
USAK +4.1%
CHRW +4%
EAGL +4%
ACLI +3.5%
GWR +3.5%
NOTE: Many tech stocks are breaking out today, including RACK (+8.6%) and ANAD (+18.5%). Its also worth noting, a stock that I own, GI, got bought out today by WNR-- for a 14% premium. I feel all the refineries are good buys, especially smaller players, such as: ALJ, DK and HOC.
Comments:
<< Home
you think the rally will hold beyond this week? I'm wondering if its prudent to buy some puts on possibly overextended tech stocks in case the herd comes back bearish next week? Also perhaps some defensive hedges?
# posted by 
: 11:59 AM
: 11:59 AM
I feel as long as the trannies are strong, the market will go up.
However, I am cognizant of seasonality and I hate being long in Sept-Oct. So, protective hedges are ALWAYS a good idea.
I sanction that trade.
However, I am cognizant of seasonality and I hate being long in Sept-Oct. So, protective hedges are ALWAYS a good idea.
I sanction that trade.
For a sure-fire way to protective hedges, use the major indices.
Buying
MZZ or QID makes sense.
Or, shorting some runaway trains, such as: RACK, ANAD or LVS can work too.
You have to balance between long and short.
Post a Comment
Buying
MZZ or QID makes sense.
Or, shorting some runaway trains, such as: RACK, ANAD or LVS can work too.
You have to balance between long and short.
<< Home
