With the Dow Industrial Average (DJI) potentially heading up to a new all-time high by the end of the year, it is a good time to see if the Dow Transportation Average (DJT) will confirm the move in the industrials. As of Thursday's close, the DJI was only 487.93 points or 2.65% away from a new high while the DJT was 1130.07 points or 12.1% away from the same milestone.
We can debate how few of the members of the DJI are in uptrends that look like the index itself, but in this exercise, we want to concentrate on the top-10 weights in the DJT: FedEx (FDX), UPS (UPS), Union Pacific (UNP), Kansas City Southern (KSU), Norfolk Southern (NSC), J.B. Hunt Transport Services (JBHT), Alaska Air (ALK), Ryder System (R), C.H. Robinson (CHRW) and Kirby (KEX).
Looking at each one with the 50-day and 200-day moving averages, we can have a more objective analysis of the trend. We found only four stocks -- FDX, UPS, NSC and ALK -- with positive-looking charts. See below with respect to their moving averages. We doubt if this is enough horsepower to propel the DJT to new highs in the weeks ahead.