{"id":192683,"date":"2023-06-28T10:57:38","date_gmt":"2023-06-28T14:57:38","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=192683"},"modified":"2024-01-24T12:13:19","modified_gmt":"2024-01-24T17:13:19","slug":"chart-advisor-transports-shift-gears","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-transports-shift-gears\/","title":{"rendered":"Chart Advisor: Transports Shift Gears"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tuesday-27th-june-2023\">Tuesday, 27th June, 2023<\/h2>\n\n\n\n<p><strong>1\/ Transports Shift Gears<\/strong><\/p>\n\n\n\n<p><strong>2\/ Building Materials Rip Higher<\/strong><\/p>\n\n\n\n<p><strong>3\/ Crypto Miners Have the Alpha<\/strong><\/p>\n\n\n\n<p><strong>4\/ Dark Clouds for US Equities<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-transports-shift-gears\">1\/ <strong>Transports Shift Gears<\/strong><\/h2>\n\n\n\n<p>The S&amp;P Transportation ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=xtn&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">XTN<\/a>) ripped higher today, soaring roughly 3%.<\/p>\n\n\n\n<p>Price is pressing against the upper end of a multi-year base as buyers continue to absorb overhead supply at a shelf of former highs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/1-25-1100x546.png\" alt=\"\" class=\"wp-image-192684 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><\/figure>\n\n\n\n<p>Not only is the long-term&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/movingaverage.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">moving average<\/a>&nbsp;flattening out, indicating that the primary trend is shifting, but the 14-period&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/rsi.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">relative strength index (RSI)<\/a>&nbsp;remains near overbought conditions. This means that buyers are getting aggressive as they attempt to take out this&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">resistance zone<\/a>.<\/p>\n\n\n\n<p>If and when they do, a fresh leg higher from this group of stocks would support a potential rotation into&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/cyclicalstock.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">cyclical sectors<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-building-materials-rip-higher\">2\/ <strong>Building Materials Rip Higher<\/strong><\/h2>\n\n\n\n<p>We\u2019re seeing bullish signals for building materials stocks.<\/p>\n\n\n\n<p>The Dow Jones Building Materials Index is printing fresh 52-week highs, completing a&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/roundingbottom.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">rounding bottom<\/a>&nbsp;formation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/2-22-1100x537.png\" alt=\"\" class=\"wp-image-192686 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><\/figure>\n\n\n\n<p>In addition, the 200-day&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/sma.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">simple moving average<\/a>&nbsp;is sloping upwards for the first time in well over a year\u2014another sign of a bearish-to bullish reversal.&nbsp;<\/p>\n\n\n\n<p>If that\u2019s not enough enough, the 14-day relative strength index (RSI) recently hit&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/o\/overbought.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">overbought<\/a>&nbsp;conditions for the first time since last summer, confirming that bulls are in control.<\/p>\n\n\n\n<p>The evidence is stacked in favor of the bulls. Price and momentum suggest that the path of last resistance points higher for materials. As long as that\u2019s the case, we imagine that a healthy rotation churns beneath the surface as the major indexes remain buoyant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-crypto-miners-have-the-alpha\">3\/ <strong>Crypto Miners Have the Alpha<\/strong><\/h2>\n\n\n\n<p>When it comes to&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/cryptocurrency.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">cryptocurrencies<\/a>, we\u2019re witnessing related equities lead the way higher.<\/p>\n\n\n\n<p>The bubble chart below highlights the one-month change on the x-axis and the change since Bitcoin (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=btcusd&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">BTC\/USD<\/a>) bottomed in November last year on the y-axis for Bitcoin, Ethereum (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=ethusd&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">ETH\/USD<\/a>),&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/a\/altcoin.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">altcoins<\/a>, and miners.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/3-23-1100x794.png\" alt=\"\" class=\"wp-image-192689 lazyload\" width=\"840\" height=\"606\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 840px; aspect-ratio: 840\/606;\" \/><\/figure>\n\n\n\n<p>Miners are by far the standouts. They have not only booked an impressive gains since Bitcoin bottomed but are also outperforming their counterparts over shorter time frames.<\/p>\n\n\n\n<p>On the flip side, altcoins lie at the lower left side of the chart, making them the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/l\/laggard.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">laggard<\/a>&nbsp;area of the crypto complex so far.<\/p>\n\n\n\n<p>This suggests that the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/a\/alpha.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">alpha<\/a>&nbsp;continues in the miners while altcoins still have their work cut out for them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-dark-clouds-for-us-equities\">4\/ <strong>Dark Clouds for US Equities<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/e\/emergingmarketeconomy.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">Emerging market&nbsp;<\/a>currencies have been in beast mode\u2014except the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/forex\/c\/cny-china-yuan-renminbi.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">Chinese yuan<\/a>.<br><br>While analyzing these currencies with&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/e\/etf.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">exchange-traded funds (ETFs)<\/a>&nbsp;such as the Emerging Currency Fund (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=cew&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">CEW<\/a>) and its new 52-week highs is essential, we\u2019re more interested in the Chinese yuan.<\/p>\n\n\n\n<p>Why? China represents the world\u2019s second-largest economy. And based on the charts, it could provide valuable insight into the direction of U.S. stocks.<\/p>\n\n\n\n<p>Check out the offshore yuan or Chinese renminbi (USD\/CNH):<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/4-21-1100x561.png\" alt=\"\" class=\"wp-image-192690 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><\/figure>\n\n\n\n<p>A steep&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/d\/devaluation.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">devaluation<\/a>&nbsp;in the yuan led the S&amp;P 500 ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=spy&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9534138-20230627&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=062723\">SPY<\/a>) lower in 2018 and 2022. Those recent events make it impossible to ignore its 28% decline since January.<\/p>\n\n\n\n<p>Perhaps the Chinese yuan will dig in and reverse higher, supporting the breakout in U.S. equities at the index level.<\/p>\n\n\n\n<p>Or China\u2019s economic outlook via the yuan could be forewarning global investors of further downside action in the coming months.<\/p>\n\n\n\n<p>Either way, new 52-week lows for the Chinese yuan do not bode well for global equities, including the S&amp;P 500.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 27th June 202<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&#038;P Transportation ETF (XTN) ripped higher today, soaring roughly 3%.<\/p>\n<p>Price is pressing against the upper end of a multi-year base as buyers continue to absorb overhead supply at a shelf of former highs.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,14,16,18,6,8,9,22,23,26,3],"tags":[8083,12410,193,8701,445,262,186,396],"contributors-categories":[13686],"class_list":{"0":"post-192683","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-asia","7":"category-etfs","8":"category-forex","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-btcusd","18":"tag-cew","19":"tag-cny","20":"tag-ethusd","21":"tag-rsi","22":"tag-spy","23":"tag-usd","24":"tag-xtn","25":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- 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