If buying only one sector in the market, healthcare (biotech, medical devices, pharmaceuticals) may be the best place to deploy your funds right now. However, transportation is another industry that's starting to pop. Last Friday, we initiated a new long position in iShares DJ Transportation (IYT), after it rallied above resistance of its recent consolidation. Moreover, it is also trading above its 20, 50, and 200-day moving averages, so there is much less overhead resistance to contend with. At just 5% below its all-time high, it would not take a lot of buying pressure in the broad market for IYT to zoom back up to test that level. The daily chart of IYT below illustrates the breakout:
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