18 September 2019

Stock Market Anemia? -- The Art of Simple Trading


Transportation companies are like the lifeblood in the body of the US stock market.  They literally carry the oxygen (company products) through the veins (roads and railways) of the country.

Federal Express [FDX] is trending in the news this morning following earnings and a 10% drop yesterday.  I don't know if the company blamed interest rates, the trade war with China, a natural lull in the economic cycle, or all 3... Fortunately, we neither listen to nor care about the supposed reasons why.  Price behavior will tell us all that we need to know.


Monthly Chart

The monthly chart suggests there's more downside to come as it's formed a Bear Flag.  The bottom of that flag (just above $140) is the first level to watch closely.  If price breaks that level, the next major support level (arguably more important than $140) is $120.


Weekly Chart

The weekly provides even more clarity.  The last candle has yet to close, but it's clear price is looking for the bottom of the flag/support. 

Daily Chart

The daily FDX chart just points up the violence of today's drop based on earnings.  Expect more of the same today.  And no, it doesn't really matter what the Fed does.

Hope it helps...
The Trader

My Most Popular Posts

TAOST Topics

How To Trade Emotional Capital simple trading Simple Day Trading futures trading swing trading Emini Trading How It Works stalk candidate trade idea Bitcoin Daily Simple Trading Habit TAOST market update support and resistance trading intraday Process price action simple trading tools what to buy what to trade Best Retirement Investments Chart Patterns Focus New Trader Sins Swing Trade TAOST Trading principles day trading lifestyle how to day trade keep it simple risk risk management trends Are you too old Confidence FAQ FASTQ How To Invest Income streams It takes as long as it takes MAR Retirement Crisis Retirement Investment Retirement Trading TAOST Power Zones TAOST Price Clusters Trade Pattern Trading & Poker day in the life of a day trader how to trade Bitcoin learn to trade performance improvement sell signal side hustle the power of simple trading psychology trading rules trend persistence ultimate side hustle Buy Signal Charts To Watch Coil Distraction How To Trade EUR How to trade SPCE Mistakes Oh S#!t Gap Oil Optimization Process Ownership Portfolio Trade Private Equity Professional Gap Retirement 911 Risk Arbitrage S&P 500 Sacrifice Shooting Star TAOST Price Structure Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory compounding context diversification downtrend extra money financial freedom how much money how to information is the stock market random kis linear regression channel lock limit down meditate money money management negative compounding optimize thinking pandemic position size prediction quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management simple day trading strategy that works stock broker trading secrets training trend analysis