FedEx and UPS - Trading Journal (09.11.20)

I am interested to watch FedEx's earnings during market close this Tuesday, Sept. 15. Last quarter was a big surprise to the upside for FedEx and end result was a magnificent ramp up higher since.

The daily chart for FedEx is showing that RSI is still above 70 but below highs of 90s in past weeks. This may be a sign of additional fire power to be included when the company posts likely another great quarter of earnings.

My edge trade here is to trade UPS based on the sentiment of FedEx earnings. Although I maybe late to the game if indeed FedEx posts great earnings that lifts UPS stock too but UPS last quarter had a great earnings too. As comparing the charts UPS posts earnings about 1 month after FedEX but both companies did well in previous quarter.

Although UPS is not as strong as FedEx with RSI and MACD is sloping down there is still a correlation in that both provided much needed delivery service in the post covid era.

If FedEx earnings results into a drop in stock price I will evaluate on the short side for UPS. Gut feeling is transportation stocks are doing well in specific categories such as logistics/delivery services. We can see it how tech has boomed in Nasdaq even with the recent draw down. FANG, cloud related companies, biotech, TSLA to name a few.

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