The highly followed Dow Jones Transportation Index is declining sharply lower again this morning. Traders can look at the iShares Dow Jones Transportation ETF(NYSE:IYT) and see that the IYT is trading lower by 3.50 percent. Whenever the transportation index declines it is often a sign of economic contraction and slowdown in global business. The IYT is still trading above its recent daily chart low made on August 23, 2011 at $75.81 a share. Should the IYT close below that important level on the daily chart that could signal another dose of institutional selling. The IYT will have intra-day support around the $76.00 area.
Some notable transport stocks that are trading lower today include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and United Continental Holdings Inc.(NYSE:UAL). On a day like today when the major market indexes are all trading sharply lower everything will generally follow the S&P 500 Index. Therefore, traders must try and time all intra-day positions with a bounce in the major stock indexes.
Nicholas Santiago
InTheMoneyStocks.com
InTheMoneyStocks.com is a research and consulting company focused on guiding investors, swing traders and day traders to financial success. Their Chief Market Strategists analyze the markets while making calls on everything from stocks to commodities and currencies. Their goal is to not only guide their subscribers but also teach them their proprietary methods leading them to become investing and trading masters.
