Consider that to be an open question from a guy who rides a trend with little consideration as to what might be the fundamental reason for the trend.
The Fidelity Sector Rotational System has been long transports for a couple of months. The trend has seemed odd to me, with rising fuel prices and all that. It seemed odd to Scott Bleier as well. He declared it a Constanza trade:
The economy is tanking & energy prices are soaring. So what is leadership? Transportation. #COSTANZA tinyurl.com/a5abhcq @woodshedder
— Scott Bleier (@CreateCapital) February 20, 2013
So now $IYT has broken out again, and Air Transportation and Transportation funds are the top 2 ranked Fidelity Sector Funds.
And so I ask, “Why are transports breaking out?”
Anyone know or care to guess what is driving this trend? I would very much appreciate hearing from you in the comments section.