NEW YORK (TheStreet) -- The Dow transportation average gained momentum Tuesday in a technical move towards a test of its May 20 all time high at 6,568.41. What this has done is raise the earnings bar for the transportation sector, which still has a sector allocation rating of 'avoid-source of funds.'I profiled these eight transportation stocks I have been following in Continue to Avoid Transportation Stocks. I have not changed this June 19 assessment and thus re-iterate that transportation stocks should be sold on strength. The transportation sector consists of 182 stocks and only six have a buy rating. We show that 96 stocks are rated sell and another 47 are rated strong sell. With 78.6% of all stocks rated sell the 'avoid-source of funds' asset allocation weighting remains appropriate. On June 19 the sector had 74.9% of stocks rated sell. The ValuEngine valuation warning continues with 74.0% of all stocks overvalued, and with 38.6% of all stocks overvalued by 20% or more. The transportation sector is 14.6% overvalued. In today's table, all eight stocks are overvalued, all continue to be sell-rated, and six had double-digit gains of 13.2% to 51.2% over the last 12 months. The projected losses for the next 12 months range from down 5.7% to down 9.8%. All are above their 200-day simple moving averages which risks reversion to the mean.
Con-Way ( CNW) ($41.60 vs. $39.81 on June 19) set a new 52-week high at $41.87 on Tuesday. My monthly value level is $39.20 with a semiannual pivot at $41.77 and weekly risky level at $42.93. CSX ( CSX) ($24.06 vs. $25.29 on June 19) is trading between its 200-day SMA at $22.44 and its 50-day SMA at $24.69. My quarterly value level is $17.41 with a weekly pivot at $23.41 and monthly risky level at $25.15. FedEx ( FDX) ($103.15 vs. $99.48 on June 19) set its multi-year high at $109.66 on March 11 well before the transportation average peaked. My weekly value level is $96.78 with a semiannual pivot at $105.29 and annual risky level at $113.72. JB Hunt Transport ( JBHT) ($76.29 vs. $72.70 on June 19) set its multi-year high at $77.20 on May 22, and this was nearly tested on Tuesday. My semiannual value level is $72.05 with a weekly pivot at $74.93 and monthly risky level at $79.03. Norfolk Southern ( NSC) ($74.39 vs. $77.03 on June 19) is trading between its 200-day SMA at $69.71 and its 50-day SMA at $76.36. My weekly value level is $71.71 with an annual pivot at $75.90 and semiannual risky level at $77.40. Old Dominion Freight ( ODFL) ($44.39 vs. $43.15 on June 19) set a new multi-year high at $44.63 on Tuesday. My semiannual value level is $40.38 with a monthly pivot at $42.86 and weekly risky level at $45.74. UNP) ($159.41 vs. $157.95 on June 19) set its multi-year high at $161.00 on May 22 with a secondary high at $160.27 on Tuesday. My semiannual value level is $149.48 with a monthly pivot at $159.33 and semiannual risky level at $167.94.
United Parcel Service ( UPS) ($89.73 vs. $87.43 on June 19) set a new multi-year high at $91.04 on Tuesday. My weekly value level is $85.14 with a monthly pivot at $91.05 and semiannual risky level at $96.32. During my drive north and then south on I 95 in mid-June truck traffic was light to moderate. I saw less then ten Conway, JB Hunt and Old Dominion trucks combined. We usually see numerous FedEx and UPS trucks, but not in mid-June. In Tampa Bay we live off U.S. Highway 41 between state road 52 and 54. U.S. 41 was the major road from Atlanta down to Miami pre-Interstate 75, and is known as Tamiami Trail south of Tampa. CSX has a rail line along our stretch of the highway, and you rarely see a train on this track. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.