Thinking about FedEx (FDX)? Here’s your trade. (March 23, 2016)
FDX
I want to look at FedEx ( NYSE:FDX ), and here’s why: This company doesn’t report earnings until like the third week in June. That’s what it looks like when the company has just reported earnings. So this company, the stock kind of has a while to trade before there’s any big catalyst, other than some contract or this or that. But it’s basically going to kind of trade largely in sync with the market. Now, on the bullish side the stock has gapped up above the 200-day moving average, which is the first time it’s been there since it was in an uptrend, then it broke down. So it has effectively broken this downtrend. That’s the bullish thing. Now, on the bearish side is more of a short-term deal. That is, this stock had a heck of a post earnings move, at one point about 15 percent or so, and now it’s pulling back. It’s got a little hook here on the lower Bollinger Band, which tends to accompany a pause in a big move. This is a big move, I think this is a pause.
So here’s my suggestion: You look at the weekly chart and you can see; is this a stock that you would buy right now? I mean you don’t even have to know anything about chart work, though it would help. Is this a stock that you would buy right now? It sure isn’t a stock I would buy right now. And by the way, I own this stock in a pension account. I certainly wouldn’t be adding to the position, I would just be holding the stock. And if I was TRADING it, I’m not trading it, if I was trading it, I would, frankly, consider, just consider, I would consider shorting it, and I would be putting a buy stop. That is, if a stock hits a particular level you buy back your short; I’d be putting a buy stop just a little bit above $165.00. So you’re shorting the stock, now again, short-term trade, you’re shorting the stock right here with a very, very low risk of loss. Because if the stock does squirt up you get out at the first new high, relative to where it was on Monday. So that’s how I would be trading FedEx ( NYSE:FDX ). Long-long-term, have to be bullish on it. Short-term, it’s had its move, now it needs to pullback a little bit. So that is how I would be trading FedEx ( NYSE:FDX ).
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