The iShares Dow Jones Transportation Average Index Fund (IYT) has broken out to record highs following a nearly 20% rally the past couple months driven by strength in airlines, railroads and shipping companies.
The transports ETF traded over $101 a share on Thursday for the first time ever, up about 18% from its November low.
According to Dow Theory, industrial and transportation averages should confirm new highs together in a healthy bull market. [Transports ETF Makes Up Lost Ground]
IYT trailed the Dow Jones Industrial Average for most of 2012 but has been outperforming since the end of September. [Transportation ETF Getting Back in Gear]
“The transportation stocks often lead the economy in both directions,” writes Sy Harding at SeekingAlpha.
iShares Dow Jones Transportation Average Index Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.