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.
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