The transports have taken off, pun intended, with the IYT recording its best weekly gain of 2016 last week up better than 6%. The ETF is dominated by the rails and its two largest components FDX and UPS account for nearly 21% of the fund. Their have been little niches within the transport umbrella that have contributed and carved out solid gains of their own. The truckers come to mind and the sixth largest component is JBHT which is a stones throw away from all time highs made in April ’15. Peer R has behaved itself too, and below is how we looked at the name in our Friday 11/4 Game Plan.
Stocks that can be bought as they take out bull flag patterns are R. R is a freight play higher by 21% YTD and lower by 4% over last one year period and sports a nice dividend yield of 2.5%. Earnings have been mixed with gains of .8 and 6.4% on 10/25 and 4/26 and losses of 7.5 and 5.8% on 7/27 and 2/2. The stock has rose 9.6% the last 2 weeks, with last week coming in the second largest weekly volume of 2016. This week is trading tight refusing to give much back up .1%, and that tight action has formed the bull flag. Look to enter R with a buy stop above 70.25 which carries a measured move to 78. Notice how the round 70 number has been a thorn all year long with just 4 daily CLOSES (no weekly finishes above) north of it, the sessions of 4/27-28 and 5/10-11.