Knight-Swift $KNX Getting Ahead Of Itself on Freight-Hype. Sell
Knight-Swift, 
KNX, the largest trucking company in the US, rallied yesterday after the earnings release of competitor J. B. Hunt $JBHT. J. B. Hunt's earnings yesterday were mostly inline, but these better-than-feared numbers eased the idea of a major transport downturn. Here's the daily chart for J. B. Hunt $JBHT.
So today, the day after that nice rally, Knight-Swift cuts its outlook pretty drastically. The cut both EPS for Q2 and Q3 down 10% of what was expected. They cite "oversupply of capacity" in the freight market which "resulted in greater than expected downward pressure on revenue per loaded mile", which is a lot of words to say that competition is eating their lunch.
In response, the stock gapped down today, but only closed down 2%. I think it's reasonable to speculate that the buyers, which were bullish onKNX because of 
JBHT's positive earnings, will now have to sell, and send the stock price back to the bottom of the range.
A sensible thesis is that if the stock can crack $34 to the downside, we may see $27-$30 in the next days after.
You can read the full article here: behindthebid.com/posts/knight-swift-knx-getting-ahead-of-itself-on-freight-hype-this-may-be-a-great-short-opportunity
KNX, the largest trucking company in the US, rallied yesterday after the earnings release of competitor J. B. Hunt $JBHT. J. B. Hunt's earnings yesterday were mostly inline, but these better-than-feared numbers eased the idea of a major transport downturn. Here's the daily chart for J. B. Hunt $JBHT.So today, the day after that nice rally, Knight-Swift cuts its outlook pretty drastically. The cut both EPS for Q2 and Q3 down 10% of what was expected. They cite "oversupply of capacity" in the freight market which "resulted in greater than expected downward pressure on revenue per loaded mile", which is a lot of words to say that competition is eating their lunch.
In response, the stock gapped down today, but only closed down 2%. I think it's reasonable to speculate that the buyers, which were bullish on
KNX because of JBHT's positive earnings, will now have to sell, and send the stock price back to the bottom of the range.A sensible thesis is that if the stock can crack $34 to the downside, we may see $27-$30 in the next days after.
You can read the full article here: behindthebid.com/posts/knight-swift-knx-getting-ahead-of-itself-on-freight-hype-this-may-be-a-great-short-opportunity
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