Transports Test Major Level

Zacks highlights commentary from People and Picks Member «inthemoneystocks».

For more Voice of the People, visit http://at.zacks.com/?id=7872

Featured Post

The iShares Dow Jones Transport ETF (IYT) has rallied sharply higher from its March 15, 2011 pivot low at $88.90 a share. This morning the IYT is trading higher by 0.59 cents to $95.72 a share.

The IYT has rallied higher by nearly $7.00 in just 12 trading sessions. At this time the IYT is trading around its recent double top area from February 18, 2010 which was $96.30. Therefore, this area should be of some resistance in the near term. The IYT is also getting a bit extended on the daily chart at this time.
Recently, the transports have climbed higher with the major stock indexes and this is a sign of economic strength in the near term. However, until the IYT clears the double top area at $96.30 traders must not assume that the transports will break out just yet.

Other leading transport stocks that are trading higher this morning are FedEx Corp. (FDX - Analyst Report) and United Parcel Service Inc. (UPS - Analyst Report). Should the IYT begin to pullback it would be prudent to expect these transport leaders to pullback as well.

Nicholas Santiago

InTheMoneyStocks.com

In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more about People And Picks, visit http://at.zacks.com/?id=7870

Follow us on Twitter: http://www.twitter.com/PeopleAndPicks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=7867.

Read the full analyst report on IYT

Read the full analyst report on FDX

Read the full analyst report on UPS