With the Dow Jones Transportation index closing above the 3204 level and the Dow Jones Industrial index closing above the 8281 level we have received the confirmation that a new resistance level is in place. This means that the Dow Jones Industrial index will go up to the point 9000 while the Transports will go up to 3717. Unfortunately, NYSE volume is not supporting the upside move so the indication is that we're still in a bear market.
From the standpoint of a trader, the Tranports would go up 16% while the Industrials would go up 8% from the current levels. If I were to "trade" this potential move, the best one would be on the Dow Jones Transports Index. The exchange traded fund that mirrors the DJT is IShares DJ Transport Average (IYT). For an investor who is concerned about being forced to hold for an extended period of time the following Dividend Achievers are within 10% of their 1 year low:
These five companies are great if you're willing to accept the downside risk. The downside risk is that we're still in a bear market and although these might be great companies the market can turn down at any point, which would bringing down the price of these relatively undervalued companies. Touc.
From the standpoint of a trader, the Tranports would go up 16% while the Industrials would go up 8% from the current levels. If I were to "trade" this potential move, the best one would be on the Dow Jones Transports Index. The exchange traded fund that mirrors the DJT is IShares DJ Transport Average (IYT). For an investor who is concerned about being forced to hold for an extended period of time the following Dividend Achievers are within 10% of their 1 year low:
These five companies are great if you're willing to accept the downside risk. The downside risk is that we're still in a bear market and although these might be great companies the market can turn down at any point, which would bringing down the price of these relatively undervalued companies. Touc.
