CPKC/N trade ideas
CP consolidatesCP, a value stock I have been eyeing for the larger long-term portfolio has been enticing to me as the company has a mote, and great revenue growth. The stock has been in a range for a few years and is aching for a breakout. I am eying another dip to the 70$ region for an entry but it just might break out in a few weeks and I will lose an entry.
Corporate Profits to Real GDP.. Heading for the bottomless pit Corporate Profits to Real GDP ๐คฏ๐ปโ๏ธ .. Breakdown on the MACD showing strong indication for a big collapse on the 3 Monthly chart.
Below the Monthly chart is showing serious negative divergence, which is bearish
Conclusion: Market reset/collapse has started
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Amazing Dip/Buy for CPCP has a very strong uptrend and is heading close to its Fibonacci Support. I think its a great time to buy CP around the 70 price range for targets of 76 and 79. Considering Stoch is also low, I think its a great time to buy
Bullish Signals
-Low Stoch
-Fib Support
Price Targets
-1st 70
-2nd 76
-3nd 79
Canadian Pacific Railway; All Aboard the Future Express?DISCLAIMER
This is in no way, shape or form, fluid and function, an analytical, qualitative or intelligent compte rendu. I am obviously not rich, so obviously I haven't made it with my own thinking, so definitely don't put faith in me. But maybe read and learn about a company that is making some major news, and maybe building some steam to lay track into the future.
Also a major disclaimer, I am always ready with train puns, so orient yourself appropriately, throw some coal onto your mind's fire and lets chug along.
BRIEF Thesis and History
Despite what is taught in school, it was neither the needless slaughter and enslavement of foreign or indigenous peoples that serves as the boiler for progress and development; it is the major investment in construction and maintenance of infrastructure allowing for the rapid transportation of goods, services and people. The internet age isn't special because now we can download high definition videos of steam locomotives making their way in and through tunnels, around beautiful landscapes, or perhaps even the more urban environments; it is because information, ideas, knowledge, services, and in a way, people have instant access to each other across the world. Until I can tell the Computer to 3D print me a delicious chicken dinner and shower with pure air, these resources need to get to me. Long ago, it was the rail network that built America, and still keeps it running today. While trucks are a major part of goods transportation, it is the rail network that conducts progress forward. The construction of the rail networks across America were the biggest step forward in uniting a divided people, and in spreading the clutches of industrialism across the West. And while North America lacks, and has lacked, progress on their rail network, Biden could change that. If any of that $4.5 trillion infrastructure plan goes into improving the rail networks, either for transportation of goods or people, then this could be the emergency cord that this caboose has been looking for.
Strategic Thoughts
It rolls like this, we are in the midst of a consolidation of the train companies in North America. Warren Buffett and CP were fighting over Kansas City Southern. CP won, but word on the street is Warren Buffett is still looking for a sleeper car to hitch a ride on. I won't go into those details, google it a little and you can probably find a good rail to hop on. I believe it is this consolidation of the Rail Network companies that is going to lead to a much larger jump, or at least a continuation of the current growth channel, long term. Just like in stocks, consolidation periods lead to dramatic changes. As the train companies consolidate into a few bigger ones, spreading across all of North America, it becomes easier to move forward in a unified direction. Democrats have shown their willingness to drive modern trends of capital consolidation by rewarding fewer companies the majority of government work. I expect this to continue, and as American-Canadian-Mexican relations improve, it will give these companies even more power.
I don't know how much longer the current growth channel lasts, but the previous channel was great, so there is some berth for possible profit. CP is a $50 billion market cap, KSU is $25 billion, I doubt the merger just makes them $75 billion. Either way, CP has had an amazing and stable growth over the last few years. Keep an eye out on this one to fill some long term investment strategies, or look out for a big impulse wave formation coming up.
CP Long - Bull Channel - Support PlayCP LONG
CP was downgraded today most likely because of the ER miss from CNI. They are both Canadian railways companies so they play by sympathy. This will unlikely affect CP long term because its earnings is next year in January. CP has multiple upgrades to the 400s through out the day and also increased its dividends. So this is very bullish news moving forward. ๐
Optimal Entry โ
IMO I think right now is already a great entry. Market will most likely open red tomorrow so we will get an even better discount.
Entry1 314
Entry2 311
The supports and moving averages are good entry points. I will personally be watching a 52 level on the RSI daily for an entry. Mostly likely scale in the contracts until the best entries. ๐
PT1 317.5 ๐ฒ
PT2 325
SL1 MA 25 (๐งก line) โ
SL2 โค supports on either charts
Contracts ๐
Entry 1: Buy the 11/20 320c and sell the 330 (should have a debit of around 3.6)
Entry 2: Buy the 11/20 move 10 strikes down on each
Safer but longer plays:
Buy the 12/18 330c and sell the 340 (debit around 5)
Single contracts: 12/18 320c @ 11
This is most likely a slow moving play. Patience is the game ๐ Slow and steady wins the race ๐
Canadian Pacific Railway Flag BreakoutThe CP daily chart is breaking out of a bull flag pattern during today's session. Seems that a lot of charts have been forming this pattern lately, a very bullish sign overall for the market.
Note how price is beginning to move above where there would be much volume action. Let's see where this stock closes today & if there is any continuation in this breakout.