NEW YORK (TheStreet) -- The Dow transportation average has been the leading equity average so far this year. At last Thursday's latest all-time closing high at 6,281.24, Dow transports were up a staggering 18.4% year to date. While this parabolic rally occurred the transportation sector became 23.7% overvalued at Friday's close, the highest reading for this measure so far in 2013.
Back on Dec. 24 I wrote, Transports Shift Into Fast Lane and my buy-and-trade strategies profiled six buy rated stocks in the Dow Transportation Average.
Then on Jan. 16 I wrote, Transports Are Truckin' Ahead of Earnings where I updated my buy-and-trade strategies for these six buy rated stocks in the Dow transportation average and added two more.
My theme today is that truckers are getting flat tires at the end of the road, that the railroads face risks of derailment, and that the air freighters could be grounded because of 12 downgrades to sell within the Dow Transportation Average.Among the eight buy rated stocks on Jan. 16, four have been downgraded to hold ratings and four have been downgrade to sell ratings. As a bigger sector warning, the Dow transportation average does not have a single buy rated stock, but instead has eight rated hold, a dozen rated sell and one with a strong sell rating. With the weekly chart profile of the Dow Jones Transportation Average
Chart Courtesy of Thomson/Reuters
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV