I’ve been digging through S.A.M. this morning and found something that’s got my attention – CSX Corporation.

This thing has squeezes literally all over the place.

Check this out: CSX is showing 6 squeezes, including a fresh one on the daily chart.

And I’m telling you right now, when you see this many squeezes stacked up with daily EMAs lined up perfectly, that’s when things get interesting.

Why Daily Squeezes Matter

Look, when you get a daily squeeze firing long, that’s your big timeframe momentum shift. But here’s what makes this even better – CSX has smaller timeframe squeezes underneath it.

That’s like having multiple engines all pointing in the same direction. The daily gives you the sustained move, but those smaller squeezes on the 195-min, 130-min charts?

That’s what gives you the acceleration.

Think of it this way: the daily squeeze is your locomotive, but all those smaller timeframe squeezes are your additional train cars adding power to the move.

Stacked EMAs = Trending Machine

Those stacked daily EMAs? Man, that’s beautiful. When you see the 8 EMA above the 21, above the 50, all sloping upward – that’s trend following at its finest.

It means every pullback is a gift, every dip gets bought. The buyers are in control and they’re not letting go.

Opening Bell Aftershocks Strategy

Here’s the thing about earnings winners – this is exactly what I look for in my opening bell aftershocks strategy. CSX beat earnings, but most traders think the move is done after that initial pop. That’s where they’re wrong.

The real money gets made on the aftershocks – those secondary moves that happen days or weeks after earnings when the technical setup finally aligns.

The volatility crush is over, the options are cheaper, but the momentum from that beat is still working its way through the system creating these gorgeous technical setups on names that already have proven money flow.

CSX is a perfect example. They beat, and now we’re getting this beautiful technical setup with 6 squeezes and stacked EMAs. That’s the aftershock building up.

Merger News Makes It Even Better

And here’s another interesting tidbit – Union Pacific and Norfolk Southern are looking at a massive $250 billion merger.

Rail customers are pushing back hard, but here’s what this means for CSX: they become the obvious beneficiary.

If UP and NSC combine, that’s two major competitors becoming one. Where do you think shippers are going to turn when they’re complaining about reduced competition?

CSX becomes the alternative that shippers desperately need.

But it gets better.

Some groups are worried this merger could trigger CSX pairing up with BNSF.

Whether that happens or not, just the speculation alone puts CSX in play. And when a stock gets “in play” with M&A talk while sitting on this kind of technical setup? That’s when things get really interesting.

The merger review is going to take about two years. That’s two years of CSX being positioned as either a potential acquisition target or the main alternative for shippers looking to avoid a UP-NSC monopoly.

Your Action Plan

This is what I call a perfect storm setup:

• 6 squeezes building energy
• Stacked daily EMAs showing pure trend
• Opening bell aftershocks strategy setup
• M&A speculation in the sector

The technicals are screaming, the fundamentals just got better with that earnings beat, and now we’ve got sector consolidation putting CSX right in the sweet spot.

The other cool thing about this potential play is that options are relatively cheap.

All eyes are on tech right now and the high-flyers.

You can buy call options with plenty of time on them and pay almost nothing for them.

I have no position at the moment, but it’s my radar for a potential play.

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