Hard Or Soft Landing?
The industrials carry a very important component within the group in the transports. Obviously, they have a good pulse of the genuine strength of the overall economy. The delivery services plays in FDX and UPS have been holding up relatively well. Some of the trucking stocks are showing their muscle with best in breed ODFL trying to break above its 50 day SMA. The rail names which were talked about in the news recently and names like CP and CNI are in correction mode down 12-13% from their most recent 52-week highs. Below is the chart of the airline ETF in JETS which is now in bear market territory off 21% from highs made back in March. The fund since the start of June has advanced only 8 sessions and is lower by 4% this week heading into Friday, and barring a huge move will make it 7 consecutive WEEKLY losses. Is this value down here, or are they cheap for a reason?