Overnight Profits in Trading FedEx (FDX)
12/09/2009 12:01 am EST
FedEx Corp (FDX) beat whisper and public earnings numbers yesterday and said not only that fiscal second quarter profit will exceed their guidance, but also that international and ground shipments rose, clearly a good sign of things to come for this economy.
The weekly chart of FedEx, shown below, has performed nicely since the March low, and this good news has just now pushed it above the 200-period moving average.
FDX has enjoyed a nice trend ride over the past nine months, and it looks like things will continue on from here for now.
The positive earnings news, along with great technical signals, indicated there is still money to be made. It’s also an excellent early barometer of the global economy. Even if the US continues its recession for six more months, FedEx will benefit from a growing global economy and is well positioned to earn higher revenues internationally until the US joins the recovery.
By Tim Bourquin, trading content director, MoneyShow.com