A Deal In Transports
Tim Knight | Aug 28, 2014 12:24AM ET
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:
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.
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