Archive | Transportation ETFs

ETFs That Are Overexposed To Companies With Questionable Fundamentals

FedEx (FDX) recently blamed its weak profitability prospects on $4.00 jet fuel, as producers may be opting out of costly air shipments. However, railway transporters don’t expect a bottom line bonanza either. Norfolk Southern (NSC) lowered its earnings outlook on weakness in coal transportation as well as general merchandise; NSC fell as much as 6% [...] Continue Reading...


Large Cap ETFs: New 52-Week Highs Across The Sector Spectrum

The CBOE S&P 500 VIX Volatility (VIX) is¬†screaming that stock market participants¬†have become¬†too complacent. Specifically, the current price¬†(14.29) is well below¬†15 — the level at which market-watchers¬†insist that investors are failing to¬†appreciate equity risk. Do stocks have to sell off because of limited daily trading ranges and ultra-low VIX volatility? Only if you have a vested [...] Continue Reading...


Pivotal Point For The Transportation ETF And The Dow

I’ve listened to scores of prognosticators interpret Dow Theory in a variety of different ways. However, all of them may agree upon one disconcerting reality; specifically, the year-long relative weakness in the Dow Jones Transportation Index¬†could be¬†cause for some concern. While I do not believe in the semi-simplistic notion that the transportation stocks must lead the [...] Continue Reading...


3 Market-Defining ETFs Suggest More Stock Pullbacks To Come

European headlines are getting the lion’s share of the blame for across-the-board stock weakness. And, in fact, every investor worry pales in comparison to Eurozone debt concerns. On the other hand, weak corporate forecasts and earnings misses are also making the rounds. Most troubling?¬†The world’s largest package delivery company, United Parcels Service (UPS), missed quarterly expectations [...] Continue Reading...


Dividend ETF Bubble? Not Unless Treasury Bonds Burst First

Banks in the United States received billions of government-sponsored investment dollars to cover monstrous mortgage debt losses. Similarly, banks in Europe are looking for a similar lifeline to shore up balance sheets plagued with toxic Spanish and Italian country bonds. On Friday, June 8, investors are inclined to believe that the Eurozone will come to the [...] Continue Reading...


What Should Investors Make Of Relative Weakness In The Transportation ETF?

You don’t have to agree with every aspect of “Dow Theory” to appreciate one of its most venerable features. In particular,¬†the Dow Jones Transportation Index should¬†lead the way higher for the Dow Jones Industrial Average. Why has this particular axiom maintained a level of popularity for more than a century? In essence, transporters “take” materials to [...] Continue Reading...


Are Tech and Consumer ETFs Serving As Safer Havens?

Financial stocks rocketed ahead in the first quarter and Bank of America (BAC) recently received a high-profile upgrade. So why is the SPDR Select Sector Financials Fund (XLF) one of the worst performers over the last 5 days? Aluminum giant, Alcoa, surprised Wall Street with its stronger-than anticipated earnings report. So why is the SPDR Select Sector [...] Continue Reading...


Troubled Spirits In The Materials ETF World

Month-over-month, most sector investments have provided investors with ample capital appreciation. Country ETFs with ties to technology, energy and infrastructure have all performed admirably. Yet there are a variety of areas of weakness that cannot be disregarded as inconsequential. For instance, in my February commentary on underachievement in the transportation arena, I highlighted the concerns with the Dow Industrials Average [...] Continue Reading...


Transportation ETF Fires A Dow Theory Warning Shot

Analysts have already lowered 2012 profit estimates for the S&P 500 from the 9% range down to the 6% range. Granted, profits may still be rising. But what could happen to stock prices when profits are climbing at a slower pace? And what happens if the manufacturers who are producing at a slower pace ultimately find themselves shipping less goods? In Dow Theory, [...] Continue Reading...


Using The CurrencyShares Euro Trust (FXE) As An ETF Selection Tool

In my 10/27/11 commentary, “3 Reasons Stock ETF Investors Should Continue To Tread Lightly,” I¬†pointed to the fact that the month-long¬†stock surge¬†had not¬†come from¬†the spectacular¬†earnings season; in fact, the average return for individual securities on¬†the session following a¬†Q3 earnings report was -0.21%,¬†suggesting that the entire October run-up emanated from enthusiasm for pan-European cooperation.¬† It follows that¬†articles [...] Continue Reading...


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