I Know I Can, I Know I Can:

The transports within the industrials, are as diverse a subgroup within a major sector. And they are as important as they come, as they are a great indicator of the genuine health of the economy. Products must be shipped through rails, trucks and planes, and aggressiveness in the latter is a good sign of a strong consumer willing to spend and travel. The chart below of the IYT is in familiar territory making a stop at the very round 200 number. Will the third time here be the charm for a decisive break through above the figure as it was pushed back their last September and November? Railroads make up the top 3 components and two of them sit just 1% off multi year highs in KSU and UNP. ODFL is now above a good looking cup base pivot of 197.35, and there is bifurcated action among the airlines. Stick with DAL which broke above the round 60 number to a high altitude, in a pattern that resembles a bullish inverse head and shoulders pattern. Measured move, or destination to 69.

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