“Cause I’m leavin’ on a jet plane
Don’t know when I’ll be back again
Oh babe, I hate to go” John Denver
Today at 5 PM EST on Mish’s Market Minute Daily Facebook page live, I introduced Trans Transportation.
The Latin origin of Trans means “across,” “beyond,” “through,” “changing thoroughly,” “transverse.”
Thus, in the cartoon, Transportation (IYT) is transgender because IYT is a variable and ever-changing element of the US economy.
In today’s world, the nature of how goods and services move through the economy is shifting with e-commerce and the internet.
IYT, the ETF symbol, is depicted as an airplane pilot who is also skilled at truck driving and freight train conducting.
Our Trans will bring you the “goods” via trains, planes and automobiles.
Currently, IYT trades in a bullish phase yet lags the DJIA after making new all-time highs on July 14th.
Charles H. Dow’s Theory said over 100 years ago that Transportation is a key component of the U.S economy.
Dow said that a bull market in industrials could not occur unless the railway average rallied as well.
Will his theory prove out?
Interestingly, the struggles of brick and mortar retail stores could be a boon for Transportation.
In my early iterations of the MMMDaily, Granny Retail (XRT) and Transportation (IYT) worked in tandem.
Perhaps more to do with buying and sending parcels directly from retail chains, 2 years ago, the correlation seemed more relevant.
However these days, with online shopping, buying and sending parcels remains tied into Retail, but not the brick and mortar kind.
Yet the disconnect between Amazon (AMZN), which made another new all-time high today and IYT, which closed basically unchanged and $5.00 off from its all-time high, remains curious.
Today, after the Federal Reserve said they would keep interest rates unchanged while still planning to reduce the balance sheet later, commodities picked up substantially.
