Tuesday, January 12, 2010

Shipping a winner?

Transports pooped on the bears again last week following breakdowns in many components, most notably FedEx. Then the rails and UPS exploded higher and Monday the transports ETF (IYT) broke above resistance, albeit on low volume.

Then there's Maude, er, the marine shipping index (SHX).Check this chart - a resistance break (actually a big base breakout) and only a day away from a golden cross of the 50-day expo average above the 200-day expo. Keep an eye out here if the market survives earnings season.

2 comments:

Paul O'Cuana said...

IMHO, this is a head fake. The punters are chasing yield right at the top. You see similar spikes in junk bonds, financial preferreds, and oil & gas MLP's.
A double dip would kill the shipping stocks.

Paul O'Cuana

Michael Kahn said...

Not arguing but short-term there is a little bull flag going on here.

But with each passing day I get a feeling that the whole bull market run-up is going to end very badly.