The transports just a few months back were a leading group, but rotation within the stock market is a constant occurrence. We saw that with the utilities to the downside. On the upside software names have been on the ascent. It always pays to see which sectors and trending higher or lower, because these moves tend to persist longer than most believe.
This is how we looked at GBX in our Tuesday 2/3 Game Plan. The stock has undergone a very negative trend reversal with a 2 week combined loss of 31% the weeks ending 10/3-10. Another nasty 3 week slide between the weeks ending 11/28-12/12 clipped off 36%. We profiled the stock with a sell stop below 50.75 but it never took out that trigger below the bearish rising wedge, but it is not a reason to take you eye of the ball. Further down in the post we take a current view of the situation.