Transportation rally may fizzle out: Traders

U.S. stocks jumped Monday, but some "Fast Money" traders believe one sector's rally may prove short-lived.

The Dow Jones Industrial Average rose 1.4 percent for the day as oil settled more than 6 percent higher. Meanwhile, the iShares Transportation Average, which holds several airline, railroad and trucking stocks, rose nearly 2 percent.

FedEx employees make deliveries in Manhattan.
Getty Images
FedEx employees make deliveries in Manhattan.

The fund, ticker IYT, had taken a hit recently, falling nearly 19 percent in the last year.

"It was a bounce in what was an oversold condition," said trader Guy Adami.

The IYT closed Monday above $133 per share, but Adami believes it will have difficulty topping $135.

Meanwhile, trader Brian Kelly agreed that the sector may struggle to maintain momentum. He argued that fundamentals in the transportation sector have not improved.

The transportation fund's top holding include FedEx, UPS, Kansas City Southern and Union Pacific.

Disclosures:

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

BRIAN KELLY

Brian Kelly is long BBRY, Bitcoin, GLD, SLV, TLT, US Dollar, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures

KAREN FINERMAN

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY calls, URI, she is short SPY. Her firm is long ANTM, AAPL, BAC, C, C calls, FINL, FL, GOOG, GOOGL, JPM, KORS, LYV, M, MOH, NRF, PLCE, URI, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.