It Could be Time for Transport ETFs to Shine

“We can see relative performance turning up in July but peaking in September. It has been drifting slowly lower ever since. To combat this, investors should require that a full plate of technicals – from trendlines to volume to momentum – line up before jumping in,” reports Michael Kahn for Barron’s. The airlines group is also in position for a breakout but in this case it is a resistance ceiling and not a trendline. And also unlike the broader Dow Transports Average, the Dow Jones U.S. airlines index is already trading above its 200-day moving average.”

Additionally, the lower fuel price outlook could also support the airlines as well. While transportation sector ETFs may provide a small exposure to airliners, investors can also take a look at the U.S. Global Jets ETF (NYSEArca: JETS), the only dedicated airline ETF on the market today, to target the global airline industry. [Familiar Catalyst for Airline Stocks, ETF]

iShares Transportation Average ETF