You guys need to see Uber Technologies (UBER).
This one is ready to go.
UBER was added to the Dow Jones Transportation Average on February 26, 2024.
Most people don’t even know it’s in the index.
Not only is it in there…
It’s right at the top of the relative strength list.
Uber reports earnings next week, on May 7.
Make Old Things New
The Dow Jones Transports – or the Trannies – is the oldest index still in use.
Here’s what it looks like this morning:
You can see it’s a stair-step higher from a longer-term perspective.
But it’s also obvious when looking at the price behavior over the past few years that the index itself is still stuck within a massive range.
When you look at the components of the index, you’ll see many of the bellwethers just churning sideways for years.
That includes names like CSX (CSX) and Norfolk Southern (NSC), for example.
Uber’s strength really stands out among the group.
We talked about the Dow Jones Industrial Average and the Dow Jones Composite Average on Tuesday.
But the Transports are a special list of stocks, one that’s helped me navigate markets for years.
I went through all 20 of them on a monthly closing basis yesterday.
That’s what I do at the end of every month, as soon as all the data hits my system.
A few names stood out, but especially Uber.
Uber is the EXACT OPPOSITE of United Parcel Service (UPS) and the airlines, which have been disasters of late.
Also keep an eye on Houston-based Kirby (KEX), the biggest tank-barge operator in America.
Bellevue, Washington-based Expeditors International (EXPD), a logistics and supply-chain specialist, looks interesting too.
Those are setting up nicely.
But Uber is the one.
Look at this thing:
Notice former resistance from those prior-cycle highs turning into support over the past year.
That’s the Polarity Principle in play.
Don’t fight Papa Dow!
That includes the Dow Transports.
This Is a Monster
Speaking of Papa Dow, did you see Microsoft (MSFT) on Thursday?
This is a major component of the Dow and the S&P 500 and the Nasdaq.
They tried to complete a top for this stock and knock it down. The bulls said no, and ripped it in their face post-earnings.
This is a monster…
Stay sharp,
JC Parets, CMT
Founder, TrendLabs