FMD Capital Management

Posts Tagged: IYT

Transportation ETFs Slam On The Brakes

Written by David Fabian, August 01st, 2017

The transportation sector of the stock market is one with a rich and impactful history. Technicians, economists, and forecasters often lean on this industry to predict major changes in global growth trends. When transport companies are thriving, it is commonly viewed as a positive sign of worldwide trade and business activity. Conversely, when they are contracting, it can be deemed as a negative omen of shrinking commerce.

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This Airline ETF Is Starting To Soar

Written by David Fabian, October 27th, 2015

Transportation stocks have come under fire this year as worries over global consumer behavior have trumped the all-important advantage of lower oil prices. To confirm this point, the iShares Transportation Average ETF (IYT) is down over 8% in 2015 despite a strong October showing.

While this sector as a whole has taken on a sluggish malaise, one sub-industry appears to be relishing the 30% decline in crude oil prices this year and there is an ETF to take advantage of it.

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Chasing Strength vs. Buying Weakness

Written by David Fabian, April 22nd, 2014

The price action of the market in April has been a perfect example of the risk to reward of buying on weakness rather than chasing strength.

In the beginning of the month, the SPDR S&P 500 ETF (SPY) dipped below its 50-day moving average and appeared to be headed for much lower prices. Fears over further conflict between Russia and Ukraine, along with weakness in momentum stocks was enough to push the markets below this key trend line. However, subsequent positive earnings announcements and geo-political stabilization rapidly shifted the momentum back to the bulls. Read more

How To Trade ETFs On Their Highs

Written by David Fabian, March 27th, 2013

Recently the SPDR Dow Jones Industrial Average (DIA) hit new all-time historical highs and the investing public largely yawned over the feat. It has been over five long years since DIA hit its last all time high back in 2007 and we all know the roller coaster ride that has ensued since the 2008 debt crisis and subsequent recovery. Most of the rebound over the last 4 years has been attributed to aggressive quantitative easing by the Federal Reserve which has kept interest rates artificially low and money cheap.

The question now though is: Is it time to ring the cash register and go to cash or stay in the game? Read more