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Today, we're opening a new bullish trade on the iShares Transportation Average ETF (BATS: IYT ) . While there is likely to be more back-and-forth in the major indexes, the news of fewer trade concerns has finally led to a breakout in transportation stocks this week. The market is still relatively shaky, so we recommend using an ETF to take advantage of this breakout.
Another positive with this week's move is that it confirms a short-term "Dow theory" buy signal. It's not the best timing indicator, but a signal like this does have a positive correlation for a move in favor of growth stocks, transportation and industrials (if not for defensive and dividend-payers).
Buy to open the IYT July 197 Call (IYT180720C00197000) for a maximum price of $4.50.
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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader , a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.Compare Brokers
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