Transportation sector-related ETFs are on the move as the markets try to recover from the fall-off last year.

The iShares Transportation Average ETF (CBOE: IYT) gained 4.7% so far this year, with Direxion Daily Transportation Bull 3X Shares ETF (NYSEArca: TPOR), which takes the 3x or +300% daily leverage of the transportation sector performance, up 14.1% year-to-date.

While transportation stocks have been rebounding, some market observers are wary of the potential pullback if the economy takes a wrong turn. Stacey Gilbert, head of derivative strategy at Susquehanna, said that while shed doesn’t expect a recession, activity in the options market indicate investors are protecting against the downside, CNBC reports.

“Your railroad stocks certainly could have 30 to 40 percent downside if there were a recession – we’re not seeing signs that’s what is coming,” Gilbert told CNBC. “Trucking and logistics names probably you could be looking at 20 percent downside — again, that’s not what’s there but we think that’s what some of the flow has been to protect against.”

Picking Areas of Strength

Erin Gibbs, portfolio manager at S&P Global, argued that investors should not take broad strokes on the transportation sector, but rather pick out areas of strength.

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