Bellwether transport stock Fedex has risen dramatically in recent weeks, reflecting the improving outlook for economic activity.
UPS has enjoyed a similar surge, as has Deutsche Post AG (which owns DHL).
Transport stocks warn of declining economic activity
Bellwether transport stocks Fedex and UPS are both in a primary down-trend, warning of a decline in economic activity.
* Target calculation: 85 – ( 100 – 85 ) = 70
Deutsche Post-DHL shows a similar drop of about 30% from its 2010 peak, indicating that European and international shipping are unlikely to fare any better.
* Target calculation: 12 – ( 14 – 12 ) = 10