The trannies (DJTI) are not as reliable a leading, coincident/confirming indicator as they were when they were known as the Rails. The addition of passenger airlines to the Dow Jones Transportation Average - now five of the twenty components - and stuff like Avis Budget car rental and Uber meant analysts had to try other metrics e.g. the cardboard box index—which has problems including volatility and not capturing a large portion of the economy i.e. digital, asset light, intellectual property GDP generators.
So back to transportation, 2024 style. Lifted in toto from chartmeister Tim Knight at Slope of Hope, September 13:
Special Delivery
United Parcel Service (UPS) has been banging around, going nowhere, since July 27th. On my entire screen of quotes, it is the only red today at all. It hasn’t broken down from its range, but by God, it’s trying. If we can break $125, it opens the window up to a move through that entire white zone.
I’ve got $130 puts with an expiration way out into March 21st, to give this tons of time to work out.
Coming into the close the stock is down $1.42 (1.11%) at $127.00.
UPS is a component of the DJ Transportation Average as is FedEx.
