Transport stocks are outperforming industrials once again this year. But it is it finally time to bet against the sector, especially with the railroads sitting near record levels?
Transports have come too far too fast, says Oppenheimer Chief Market Technician Carter Worth on CNBC’s Closing Bell. The relationship between transports and industrials is one of the great relationships in all markets. And right now they’re a little bit out of sync. Transports are up about 15% year to date while the Dow is down 5%.
How would you trade it?
If you had to commit money for the 30 industrials or the 20 transports and not touch it for 12 to 18 months I think it’s a much better bet to go with the industrials.
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Trader disclosure: On May 27, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (WMT), (MSFT); Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (NUE), (BTU); Najarian Owns (AAPL), (BHI), (BUD), (TSO), (XLF); Najariain Owns (EXPE) Calls; Najarian Owns (BAC) Puts; Finerman Owns (GS); Finerman's Firm Owns (AAPL), (AEO), (MSFT), (RL), (SUN), (TSO), (VLO); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Owns (C) And (C) Leaps, Finerman Owns (C); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY)