The risk is clearly defined here. (June 25, 2012)
JBHT IYT DJ-20
I’m Dan Fitzpatrick at StockMarketMentor.com on Monday, June 25th. I’ve got a real quick one here. We’re looking at JB Hunt ( $JBHT ). The oil transportation sector and I cover this in a little more detail in the Strategy Session. The transportation average. IYT ( $IYT ) or Dow Jones Transportation Average. This is still in congestion here. It’s not in an up trend or in a downtrend and a lot of that’s because we’ve got countervailing or opposing forces here. On the bullish side, hey, oils low so costs are less for transporting stuff. On the other hand oils low and the reason it’s low is because economic activities kind of drying up. So therefore there’s probably going to be less stuff to move around because less stuff is being sold. Hence, the double, you know, the two sides, of the analysis on the transport and on oil. But we look at JB Hunt ( $JBHT ) this has been a real leader. But it’s pulled back substantially from this peak where it ran outside the upper Bollinger band. Well, now I think you’ve got an opportunity. We get one, two, three, four, five day move down, five consecutive days JB Hunt ( $JBHT ) has moved lower. But today it extended below the fifty day moving average, again after a big move down. It extended below the fifty day moving average and then rallied higher. And the stock ultimately closed up near the high of the day. This is a reversal; it’s like a five day reversal. Day one, two, three, four and on the fifth day the bears got done the bulls started in. So far I think that this is a good opportunity to take a low risk buy on JB Hunt ( $JBHT ). You put a stop just a little bit below today’s intraday low of $55.78. Then you can trade this stock to the long side. Is it going continue to go up to new highs? I couldn’t tell you. Only the liars will tell you that for sure. I’m just telling you that this is short term oversold. It’s looking like it’s bouncing, I would go ahead and take this stock. If you can get four or five points out of it then that’s what you want to do okay. Then you want to sell it. So anyway, trade this range, use this as support, use about $60.00 or so look use the upper Bollinger band is resistance and that should be a nice short term trade for you. Okay, members get over the Strategy Session a lot of stuff to cover. Free Chart