Public trading strategy
FedEx drops on transition uncertainty — buy once the Freight separation dust set
Thesis
FedEx is in the middle of a messy business separation, and investors hate uncertainty. But the underlying business just delivered a strong quarter. Once the Freight separation details are clear, the stock could rebound as investors realize the core shipping business is healthier than the headline panic suggests.
Strategy approach
Build a value-entry strategy for FDX that enters long when the stock closes up from the previous day after a 5%+ drawdown from recent highs. Exit at a 8% profit target or 5% stop loss. Require the 50-day moving average to be above the 200-day moving average as a trend filter.
Markets and timeframes
FDXD1