Transportation ETFs Poised for a Fall? | ETF Trends

The Dow Jones Transportation Index has been showing some interesting signs of life of late, but other pressures threaten to keep transportation exchange traded funds (ETFs) down for the time being.

According to The Wall Street Journal, the strength in the Dow Jones Transportation Index for many months has signaled a strengthening of final demand. When final demand increases, movement of physical goods does, too. [Transportation ETFs Go on the Move.]

That’s the good.

Now that the sector is back to some reasonable semblance of health, analysts are looking ahead to what trends 2011 will bring. Discouragingly, they’re signaling that deliveries of new ships are accelerating quickly.  [Transportation ETFs: The Good and the Bad.]