The stocks in the Dow Jones Transportation Average are getting the bid that they needed for this overall market to continue its march higher. Going back and doing the work, it’s hard for stocks as a group to keep ripping without rotation into some of the underperforming areas. Transports were right near the top of our underperformer list for a long time.
This is no longer the case. We’ve already talked about how Transports were the best performermers in the world for the month of July. This weekend we also pointed to the change in trend relative to the S&P500.
Today, let’s look deeper into the components of the Dow Jones Transportation Average. Remember there are 20 of them and consist of Airlines, Rails, Trucks, Logistics etc. This chart plots the drawdown from 52week highs on the x-axis and the y-axis represents the performance since June 5th, which was the former highest weekly close for the index: [Read more…]