12 Sell Downgrades Threaten Dow Transports

Old Dominion Freight (ODFL) ($37.53 vs. $35.10 on Jan. 16) -- has been downgraded to sell from buy and is below its year to date high at $37.95 set Feb. 1. My semiannual value level is $35.09 with a monthly pivot at $37.54. Time to book profits as this investment could get a fuel leak.

Union Pacific (UNP) ($141.69 vs. $131.44 on Jan. 16) -- has been downgraded to hold from buy and traded to an all-time high at $141.78 on Friday. My monthly value level is $134.01 with a weekly pivot at $141.59 and semiannual risky level at $143.14. Reduce positions on strength to the risky level.

United Parcel Service (UPS) ($85.47 vs. $79.33 on Jan. 16) -- has been downgraded to hold from buy and traded to an all-time high at $85.70 on Thursday. My semiannual value level is $80.21 with a weekly risky level at $86.30. Reduce positions on strength to the risky level.

Tomorrow I will evaluate the eight home builders I profile each month following the National Association of Home Builders Housing Market Index released this morning, and housing starts out Tuesday morning. Just beware that all eight have been downgraded since my last post on Feb. 21.

At the time of publication the author held no positions in any of the stocks mentioned.

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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at [e-mail].

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