Karpel’s Corner: The Market Keeps Chugging Along

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Stocks have been extending their recent rally with leadership from an economically-sensitive group, Transports ($IYT).

The Dow Jones US Railroads Index ($DJUSRR) was trading 3.5 percent higher yesterday, exploding above it’s 50-day moving average. Strength in Rails has this sector at new highs. Rails are leading today’s rally, which is even more impressive. CSX Corporation ($CSX) is trading at a record high and Union Pacific ($UNP) is following suit.

We had a pick in September in Union Pacific ($UNP) that is now back in play. Our original stock entry was at $106, the November options $100 and $105. These calls are now in the money.

Look to trim some potential profits as we get closer to November. The action in the Rails is a positive sign for the market as a whole.

See you next time at the Corner!