It appeared at the time that this particular sector was set to outperform the FTSE 100 as a whole, and so it has proven. In the three weeks since that update, the industrial transportation index has risen 116 points, or about 4%. The index is now positioned just 115 points shy of my minimum target set at 3140. Stay with the trade.
In what is a major positive for the industrial transportation sector, economic statistics released last week show British exports hit an all-time high for the quarter ending June. Britain exported a record total of goods worth £78.4 billion over this period. Indeed, momentum appeared to accelerate in the final month of June, suggesting the UK and global economies may be springing back to life. One way or another, these goods are transported to their final destination, and Britain's listed companies look set to win their share of this recovery.
While 3140 remains my target to book profits, the actual chart resistance is a 50-point band defined as 3138-3188. With growing evidence that world trade is increasing, we may well see the high end of this range tested. If so, this would complete a rise of 200% for the sector index since the unique low presented in early 2009.
Recommendation: stay long. Target band 3138-3188. Stop-losses can remain in place, triggered only on surprise weakness beneath 2650.