EarningsBeats.com Digest

Published: Fri, 01/17/20

EarningsBeats.com Digest for January 17, 2020

Dear EarningsBeats Digest Member,

Q4 Earnings Season Sneak Preview Webinar

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Railroads Break Out To Lead Transportation Stocks Higher

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In my Daily Market Report to EarningsBeats.com members yesterday, I highlighted the truckers ($DJUSTK) and how they've been outperforming and should be considered for investment. Well, railroads ($DJUSRR) broke out yesterday on an absolute basis and are beginning to regain relative strength as well. That combination has set the stage for a banner year for transports in 2020. That's what I've written about in my various blogs over the past few months and what I firmly believe will happen. Here's the latest chart on the railroads:

The two blue circles show the DJUSRR breaking out (bottom panel), while the top panel illustrates the relative strength line turning back up and attempting to clear the relative 20 week EMA. A strong transportation area nearly always leads to a significant increase in the S&P 500. One stock to watch today will be Kansas City Southern (KSU), a railroad, which is scheduled to report its earnings today.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.