After running scans last night, it became apparent that rotation would make sense, as many prosperous groups are near 52-week highs and overbought. While these overbought stocks might continue, the candidates we will discuss during the LIVESTREAM session today will most likely pique your interest as much as it did mine.
Scans Show Rotation into Rails and Trucking
Many of the rail stocks like Canadian Pacific (CP), Norfolk Southern (NSC), Kansas City Southern (KSU), and CSX Corp (CSX) are all showing signs of rotation, with a few showing relative strength like NSC.
In addition, trucking stocks like LSTR, ODFL, FDX, R, and XPO are looking strong. Auto parts stocks also look bullish, as discussed on Monday.
FedEx Base Breakout – Rotation
FedEx (FDX) is breaking out of a flat base and would profit greatly when a China-US deal is reached. Rotation into this stock is obvious.
XPO Logistics – Rotation
- XPO Logistics’s share price is trading below the future cash flow value, and at a moderate discount (> 20%).
- XPO Logistics’s share price is below the future cash flow value ($110/share), and at a substantial discount (> 40%).
Considering where growth stocks and high-flyers are trading, it makes sense to focus on a few of these names, where r
Futures are lower this morning.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade the transports and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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