The transports are doing a lot of the heavy lifting, pun intended, and the IYT is looking at a potential 7th consecutive weekly gain. Ironically the last time that occurred marked the all time high for the ETF. That excerpt was from our opening paragraph in our Friday 3/4 Game Plan and it is now higher 7 straight weeks and each of the last 3 have been in better than average weekly trade, and all 7 advancing weeks have CLOSED at or well into the upper half of the weekly range. CP rose more than 5% Monday and is now higher by by more than 30% since the bullish hammer candle it recorded on 1/21 at the very round par figure. Peer LSTR is looking ready and below is exactly how the LSTR chart was presented in our daily report that day.
Stocks that can be bought after recent trend changes are LSTR. LSTR is a transport related name UP 3% YTD and lower by 10% over the last one year period. It currently rests 18% off recent 52 week highs. Earnings the last 4 instances were mixed with gains of 2.1 and 3.2% on 1/29 and 7/24 and losses of 4.7 and 2.2% on 10/23 and 4/24 (4/24 reaction CLOSED well off session lows). Last week in particular was impressive as it ROSE 4.6% in above average weekly volume as the S&P 500 FELL 3.6%. Last Thursday the stock penetrated the 50 day SMA to the upside CLOSING above it (line was stubborn resistance since last summer). Look to enter on a pullback after the recent trend change at 59.50. Excellent strength Monday with a precise bounce off 50 day SMA.