EarningsBeats Digest

Published: Mon, 11/16/20

EarningsBeats.com Digest for November 16, 2020

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Transportation Services Has Cleared A Key Resistance Level

Last week was a week of rotation and there are plenty of examples of it. Today, I want to focus on one industry group - transportation services ($DJUSTS). This was 1 of the 10 worst industry groups during the early weeks of the pandemic, but like most other adversely affected industries, the group had an excellent rally in the first week of June. I included the DJUSTS in my Pandemic Index, which was created to track these bad pandemic groups. I've been watching this index, expecting that we'll see a breakout above those June highs. While the Pandemic Index hasn't yet cleared the June 8th high, the DJUSTS has:

The action on this chart appears to be so much more bullish now. The uptrend from April to June was impressive, but the group has been consolidating ever since.....until last week. The vaccine news seems to have inspired many institutions to begin accumulating stocks in this space. A hallmark of bull market advances is wide participation and last week's rotation now looks to be inviting transportation services stocks to the party.

Happy trading!

Tom Bowley

Chief Market Strategist

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