Dan Fitzpatrick
This column was originally published on RealMoney on Sept. 30 at 12:20 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
After back-to-back hurricanes that put a serious hurt on oil prices, it stands to reason that the transportation sector would be in serious trouble. Higher fuel costs that cut into the bottom line won't necessarily be passed on to the consumer. Most stocks in the Dow Jones Transportation Average have indeed been trending lower, but there are signs that some are done traveling south. Since the market is a discounting mechanism, any kind of broad-based firmness in the transportation stocks would mean that the downside to the hurricane damage is known and is already factored into present prices. Let's look at the Dow Jones transports average and get a feel for the price action. We'll also look at four components of the average that appear to present good buying opportunities. The average has been halted at around 3800 for the past three quarters. Each time the index reached that level, the buying dried up. However, the most recent low could be close enough to the 3800 resistance level that the current upside momentum will last long enough to push it to a new high.
Notice the 600 million volume bar from a couple of weeks ago? That's largely due to the heavy trading in Delta and Northwest Airlines. It also coincides with the recent bottom. As such, it's a safe bet that buying pressure will continue to push the index higher.
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn MoreOptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn MoreReal Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn MoreStocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,438.67 | 1,311.48 | 2,828.01 | 15.81 |
Oil *
102.03
|
|
UP
18.81 |
DOWN
1.84 |
DOWN
9.35 |
DOWN
0.44 |
10 Yr
1.58%
SPDR Gold
151.62
|
|
+0.15%
|
-0.14%
|
-0.33%
|
-2.71%
|
Data delayed 20 minutes |


Connect with TheStreet