Analysis on the railroad sector & several major railroad stocks that look to offer objective trade entries followed by a brief overview of IYT (transportation sector ETF) as well as the trucking sector and $XAL (airline index).
I'm balancing working through some of the programming issues on the site today with trying to post some of the short-side trade ideas that look to be currently offering an objective entry or add-on. In fact, I have an unusually large amount of very attractive short candidates on my watch-list and with today's large gap having been faded as expected, the bearish scenario is alive and well. As I'm trying to juggle my own trading with the programming issues and posting actionable trade ideas, I'll just share some of the more attractive looking short trades at this time. These are all [...]
Although I don't have a hard rule went it comes to stop triggering, I typically use a candlestick close above my stop level based on the time frame that the trade was based off of. For example, if a trade was based off a weekly chart, I will look for a weekly (end of day Friday) close below or above my stop criteria. The active CP short was based off the daily chart and will almost certainly close above the recent high of 94.83, thereby triggering the suggested stop on this trade. Therefore, barring any crazy reversal into the close and [...]
The CP short trade has played out exactly as expected so far and is now back to the bottom of the wedge following the wedge overthrow on which this trade was originally shorted back on Oct 24th. So far (knock on wood), that entry (94.56 at the time of the post) proved to be a mere 27 cents off the all-time high in the stock. However, this trade is now only up 4% but still looks good and should provide another objective short entry or add-on once/if prices break below the rising wedge pattern. Assuming that the wedge breaks down from [...]
regarding the previously posted CP short trade, CP was one of my top picks for a short trade as i went through the charts of all of the components of the sector last night. however, i held off posting the setup as CP was scheduled to announce earnings this morning, which gave the stock a 6% plus pop providing what could prove to be an very nice entry for the trade. of course, we need to see prices fall back into the wedge pattern & then break to the downside in order for this trade to play out but i think [...]
i am adding CP as an active short here on the earnings induced wedge overthrow (current price 94.56). an ideal stop would be just over the 100 level, which would provide approximately a 3:1 R/R if targeting T1 (obviously, a much better R/R for T2).