Kris Andersen Blog | Dow Transports Push Higher On Stock Rotation | Talkmarkets
Founder, StockMarketCookBook

Dr. Kris Andersen has been managing money for over twenty years as a private investor and portfolio manager. Combining her love of cooking with her expertise in the financial markets, Dr. Kris developed, a website featuring easy to follow financial ... more

Dow Transports Push Higher On Stock Rotation

Date: Wednesday, June 3, 2015 2:44 PM EDT

Today's strong move by the Transports is buoying the other major averages, most notably the small-cap Russell 2000 (RUT) which is moving back above 1260 resistance. The heightened VWAPs on both the positive and negative sides is a sign of stock rotation out of energy and energy related issues, REITs, and materials, and into consumer discretionary, internet, and software. A rise in bonds today pushed bond funds lower forcing the Long Term Treasury bond etf (TLT) to fall under major support at $118.

On the flip side, the news bode well for banks and investment services. Two bank etfs, the Regional Bank etf (KRE) and the Bank etf (KBE) both gapped up to hit new yearly highs. Also, the Broker/Dealer etf (IAI) bested $44 resistance to reach a seven year high. These groups should continue to outperform in a rising interest rate environment. In currencies, the greenback continues to slide against other currencies. The Bull Dollar etf (UUP) is testing $25 minor support; a fall below that would likely send it down to test major support at $24.50.

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