Union Pacific Gets Derailed
Railroads have shifted into major corrective mode, after strong rallies that lifted the Dow Jones Transportation Average to a six-month high. Other sector sub-groups need to pick up the slack, but that's now unlikely because crude oil has broken above four-month resistance, just in time for the traditional run-up of fuel prices into the summer driving season.
It doesn't take a rocket scientist to understand that higher gas prices will hurt airlines, packaging companies and truckers, which have been key groups supporting the 2012 transportation rally. Of course, the expected downturn has a negative implication for the broader market as well, because the sector has a well-deserved reputation as a leading economic indicator....527 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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