The transports were a vital part early on in the overall rally and with the strength waning is that a sign of impending weakness? Of course they were a critical piece of Dow Theory, and still today the group itself is often looked upon as a good indicator of economic strength. It is a very diverse group, with rails, airlines, truckers, etc and with AMZN is now in the space leasing aircraft the sector is in the spotlight. The airlines are having a bit of a struggle even in the face of weak oil and below we look at a freight trucking play originally posted in our Friday 12/16 Game Plan. Peers HUBG and R are off 8 and 12 % respectively from their most recent 52 week highs and former leader SWFT by 24%.

Stocks that can be considered shorting opportunities are JBHT. JBHT is a best in breed transport play higher by 34% YTD and over the last one year period and sports a small dividend yield of .9%. It has weak earnings momentum with back to back losses of 2 and 4.7% on 10/17 and 7/18 after gains of 2.1 and 1.9% on 4/18 and 1/21. The stock is on a current 5 week winning streak up 22% in the process, however last week registered a bearish shooting star from all time highs. To its credit it has acted well POST breakout from a long 19 month cup base trigger of 93.60 taken out the week ending 11/25/16 which began the week ending 4/17/15. JBHT did record a bearish engulfing candle at the round par figure on 12/9 and look to enter with a short here.

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