The Transports are quite similar to the Russell 2000 (below). It has already hit the upper trendline and it is interesting that each successive up move, 1 , 3 and 5 is actually steeper than the one before. The same holds for the “expansion” of the value. Why this index is doing so well remains a bit of a mystery. Part of the answer might be that it does not contain any shipping companies, which is , of course, where most of the transportation occurs.
See our earlier comments concerning this particular index. A few months ago our target was roughly 1050 and we thought it might take a month or so. The timing is off by quite a bit as seems to always be the case nowadays; the move was not a straight line but an up/down kind of thing that took much longer, perhaps because the various chefs in the Fed. kitchen could not agree on the right ingredients, taper, or should that be tamper, one day and none the next. In any event we are now within spitting distance of a potential peak. A sell now!
Never looked at Boeing, not sure why. The company has been in the news quite a few times. There were some extra-curricular activities of one of the top guys that caught the public’s attention and then there was the move of HQ from Seattle to Chicago that no one understood. More recently there were additional delays for the Dreamliner resulting from battery fires , which appears to be the story today. One of the planes had a fire at Heathrow, it had waited patiently to do so at the double top level after climbing almost 100% in the last year. The miracle today is not that it falls 6/7% , but that it ever got to these heights. That, by the way, is a sell.
Again the usual then, a year ago, and now charts;
Rather than 4 months it took the better part of a year or more to get to the target ($37). It exceeded that by a few dollars but essentially it did as expected. This was a bullish call that would have earned you >25%! Presently it looks like wave 1 down, followed by wave 2 up are being traced out, perhaps to $38/39 when you will want to exit this trade.