NEW YORK ( TheStreet) -- Back at the market lows of Nov. 16 the Dow Transportation Average traded as low as 4838.10, and a close that day below the June 4 closing low at 4847.73 would have been what market technicians call a Dow Theory Sell Signal. This signal was averted as trucks turned on a dime, trains switched direction and the air freighters took flight. Nov. 16 was the day of optimism that the fiscal cliff would be avoided.
On Thursday, Dow Transports traded as high as 5358 30 and a close above the Feb. 3 closing high at 5368.93 would have been a Dow Theory Buy Signal. This did not happen as a pre-Christmas compromise on a deal to end the fiscal cliff was not achieved.
The Transportation sector is not cheap as www.ValuEngine.com shows that this sector is 10.3% overvalued after a 10.75% rally from the Nov. 16 low to the Dec. 20 high. Railroads and truckers are less overvalued by 2.9% and 2.6% respectively. One of the two major air freight stocks is undervalued by 8.7%. Today I profile six transportation stocks that are buy rated according to ValuEngine.
On Aug. 28