I’ve been writing a lot in my column that the transportation sector is not helping the stock market. In fact, it is falling as the broad market rallies and that should have Dow Theorists up in arms.

Here is Paccar (the former PACific CAR and Foundry), a maker of trucks and aftermarket parts. For some reason, I thought it also made railroad cars but what do I know as a technical analyst?

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It bonked after a pretty good earnings report but a forecast that rising commodities prices hurt 2011 margins. This chart action is not exactly an endorsement of the recovery.

Further, here are some recent headlines:
Dec 30 – Paccar Appears Poised for Serious Earnings Expansion
Feb 1 – PACCAR Announces Improved Fourth Quarter Revenues and Net Profit
Feb 2 – PACCAR is a manufacturing company that reported positive quarterly earnings. On average, analysts expect shares to rise between 12% to 17%.

Transports and transportation “makers” do not pass the smell test.