Delivery Decisions:
The delivery services names have been impacted by the port situation. But more importantly, stocks are a discounting mechanism and look forward generally by about 6 months. In the very niche arena of delivery, there are some small-cap leaders like and AAWW which is trying to break above the very round 90 number after a break above a cup base pattern. FWRD broke above a cup base off its own through the very round par figure. But the 2 whales in the space we all know are UPS and FDX, and there has been some divergent action between the two. Over the last 3 month period, for example, UPS has gained 10%, while FDX has dropped by 11%. On a YTD basis UPS has gained 25% whereas FDX has fallen by 6%, and UPS has the better dividend yield paying 1.9% compared to FDX’s 1.2%. On the chart, I prefer UPS obviously as I admire strength and if the name were to pull back into the gap fill near 206 from the 10/25 session consider it an opportunity.