Investopedia says to buy the railroads [CSX]

Investopedia says that CSX earnings could wake up sleepy transports.  If I didn't know that the true fundamentals behind stock movements are unknown and unknowable then I might be tempted to believe their analysis.  After all, they have a catchy name and a fancy web site so they must know something that I don't know, right??  Well, no.  Not because I don't value the ideas of others but when it comes to stock price movements in waves I trust and everything else is pretty much noise.  So let's go to the chart.

As is often the case, the "mainer" stream media begins to get excited near likely peaks.  I think that CSX is a strong sell based on the wave count below.  Blue C is even below the bottom of the red line shown.  While I have not seen 5 down from the top yet, its a safe bet to enter this short right now with stops at $31.35.

Note how traditional analysts base their future recommendations based on what just happened recently whereas an Elliottician bases future likely outcomes on what has happened over time.  Elliotticians agree with the saying, "the further you look into the past, the farther you can see into the future".

Another major reason to trade using Elliott wave models is that I am the first to say that I cannot predict the future with 100% certainty.  Nobody can.  What I CAN say is that I don't just pick any old time to get in.  I get in based on specific Elliott wave rules and guidelines along with my own proprietary rules and guidelines.  Because of this rules based approach, I know when to get out. If the model is going to be wrong, it will do so very quickly, very cheaply.  This is absolutely not the case with traditional fundamental analysis.  Someone who buys CSX based on recent earnings could quickly be left holding an empty bag simply because the shares have no intrinsic value and thus they trade on faith.  Fundamentals do not track faith!  Only Elliott waves can do that (faith being the same thing as herd mood).

It will be interesting to see who is right and who is wrong in this.  All I know is that if I am wrong I will stop out my short at 31.35 without blinking an eye.  But if investopedia is wrong they will not give any indication of it.  Their calls (and those of all other similar analysts) are without any feedback mechanism.  This is a major aspect of Elliott waves that sets it apart from the crowd.