The Dow Jones Transportation Average just closed at a new 52-week high. But the index is still below its highs from the prior cycle, while many of the other large-cap indexes in the US have already broken out above those levels. One “transport” stock is leading the way, observes JC Parets, founder of AllStarCharts.
When you think about how important it is to equities all over the world that the Dow Transports finally break out of this huge basing period, you wonder which stocks are actually going to drive those returns.
Is it going to be the airlines? Lol. Or could it perhaps be that software stock that was added to the index earlier this year? Here is Uber Technologies Inc. (UBER) breaking out to new all-time highs relative to the Dow Jones Transportation Average:
In the Dow Transports, you've got railroads, truckers, airlines, and other logistics companies. And now you have UBER as well.
The latest addition to the Dow Jones Transportation Average is already making an impact on the index. Say what you want. Maybe this stock shouldn't be in the Transports.
But it is. And it's helping to drive returns for this key market index.
