Editor's Note:

FYI: Another stock I'm watching is DHR. If shares breakout over $65.00 it should forecast a move toward the $70.00 region.


Fedex - FDX - close: 69.74 change: +1.23 stop: 67.25

Why We Like It:
Yesterday in my editor's note I listed CHRW as a transport that is shaping up as a bullish candidate. Digging deeper into the transports I believe FDX will offers us more bang for our buck. Currently FDX is consolidating sideways under resistance near $70.00. I am suggesting a trigger to buy calls at $70.55. If triggered we want to take profits at $74.75 and exit completely at $79.00.

Keep in mind that if the jobs report data comes in positive FDX could gap open higher. I would avoid opening new positions if FDX gaps open above $72.50.

Suggested Options:
September options expire in about two weeks. I'm suggesting the October calls even though we'll plan to exit ahead of FDX's earnings report.

BUY CALL OCT 70.00 FDX-JN open interest=4650 current ask $3.70
BUY CALL OCT 75.00 FDX-JO open interest=2682 current ask $1.60

Annotated Chart:

Picked on September xx at $ xx.xx <-- TRIGGER @ 70.55
Change since picked:       + 0.00
Earnings Date            09/17/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on September 03, 2009