Conclusion, Investment Implications, Strategy

The iShares Transportation Average ETF (IYT) is in the midst of a major uptrend, according to its 200-day moving average, and is currently breaking formidable overhead resistance.  In addition, the total net assets invested in IYT (AUM) are amid a Sep 16th trend of monthly expansion while IYT has also been outperforming the benchmark S&P 500 (SPY) on a quarterly Strategic basis since Oct 10th.  Together, these factors establish favorable conditions for more outright strength and relative outperformance from IYT and other transportation related assets.

IYT Breaking Resistance Amid Expanding Assets & Relative Outperformance

The upper panel of Chart 1 below shows that the iShares Transportation Average ETF (IYT) is in the midst of a major uptrend as defined by its 200-day moving average and most recently has broken formidable overhead resistance at its Mar 8th 71.16 high.  The middle panel shows that the total net assets invested in IYT (AUM) are in a Sep 16th trend of monthly expansion.  Expanding AUM indicates near-term bullish conviction in a price advance.  The lower panel shows that IYT is also in the midst of an Oct 10th trend of quarterly relative underperformance versus the S&P 500. 

As long as these conditions remain true, IYT is likely to continue appreciating in price in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Table 1

Click the table to make it larger