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While I want to see a new group of growth names emerge as leaders of a fresh bull run in lieu of the defensive plays currently sprinting higher, it is tough to ignore the relative strength in the transportation sector. First things first–We have this holiday period to navigate before turning our attention to the more serious matter of 2012 and how the new year will progress.
The Dow Jones Transportation Average closed Thursday’s session marginally above the key 5,000 level, which I have been noting for a while now as an extremely important price. If the bulls can hold this move, then of course the obvious trannie plays like CP UNP UPS will seem inflows. Presently, the aforementioned stocks are technically well set up. Beyond them though, a shipper like Genco printed a hammer on Wednesday after a prior steep downtrend, and then followed it up with a solid bullish marubozu on Thursday to confirm. So, the presumption is a tradable move higher with a clear stop-loss reference point (below Thursday’s lows would work, and definitely below the hammer).
Moreover, rail-related name GBX enjoyed an impressive cup and handle breakout on Thursday. If you do not want to chase, consider a similar name in TRN, which also has a cup and handle setup. Trinity saw its breakout fail so far, but if the bulls give it another go I think it is a good long idea to consider.
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That pic is fairly tame compared to the title..:)
Can’t win them all 😉
LOL I agree with Goldie.. I expected a Doozie when I clicked it HAHA!
Good looks on those. Love the clear cup and handle.
I’m gonna go out on a limb and say that keg is an empty… which is much less impressive from a motorcycling standpoint. Still funny though.
Chess — I meant to ask you on your “Grinding Out Wins with a Winner” post (but was afraid it might be too late to be seen), are we ever going to get Vegas Stories, Part 2? I have long been wondering what became of your highly talented poker acquaintance after he hit the Pit…
Haha Well, ok. Since I have been getting a lot of requests for it. I will try and get on it, thnx.