FedEx Shows Double Dip Coming (FDX, UNP, DIA)?
By Swing Trader
March 15, 2010 9:45 AM
March 15, 2010 9:45 AM
Robin Griffiths, technical strategist at Cazenova Capital, told CNBC Monday morning that FedEx Corporation (NYSE: FDX) is giving investors a clear signal that the economy will double dip. You can view the clip here.
Mr. Griffiths cites the Dow Theory in his analysis, but makes some alterations. The original Dow Theory, developed by Charles Dow, looked at the railroads (NYSE: UNP) to confirm that the Dow Jones Industrial Average (NYSE: DIA) was in an uptrend. However, Mr. Griffiths believes that in the modern economy, FedEx gives us better insight into economic activity than the rails.
He argues that FedEx's chart is showing weakness and shows a significant double top.
Therefore, it may soon be time to take some risk off the table.
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