High diesel costs are an industry-wide headwind causing poor guidance and a bearish outlook for JBHT.

Yes, certainly a rough day for JB Hunt, but still up 76% during the past year as you can see from our purple line here,

However, the reason that they issued this kind of poor guidance seems to be it was a headwind from the high cost of diesel right now. So, this is something that would affect the industry as a whole.

You can see that this was apparent in many other names ArcBest Knight-Swift Old Dominion CH Robinson.

So, now what we see here was that we had our highs just shy of 300. From there, we have formed a downward sloping channel type shape here. We had our two subsequent high points.

We duplicated our trend line and put it across the lows to give us our channel type shape. Yesterday's move brought us significantly below that level. Our high of the day looked like perhaps we could reenter that channel area, but it was not to be.

Our red line here, old highs and subsequent lows comes in at 254. That now presents a resistance area, the gap to the upside as well. 271 would be another area of interest to the upside.

Meanwhile, to the downside, the old highs we saw here, the subsequent lows are about where we bottomed out yesterday at our first green line 235. Beyond that, a small gap and other lows here near 230 and another high point after a gap and a low point there near 221 after a breakout to the upside.

So, some definitely a lot of things to consider going forward in this name.

Our moving averages show that Uh, we also hit a pretty uh, important point yesterday. Our 250-day exponential moving average in orange here representing one trading year. So, this is our longest term and thus most significant moving average that could be supportive near 233.40. That's where it was as of yesterday's close.

RSI fell below the 50 midline, but crucially it did not yet go below the uh, 30 threshold which would represent the oversold area. That would be further uh, bearishness if it were to make a significant push beyond that level here.

Our volume uh, profile study shows that the next node that we have that price is approaching is here between 221 and 230 kind of representing this old range-bound high area here.

So, if we were to push into that area, that could be supportive potentially.

Notice as well the very heavy volume that we saw during yesterday's move here. So, high volume on a big move is often a sign that it's it can be a a an important price development.

Right. So, thinking about the options market expected potential moves here. September 18th, Friday's expiration right here plus or minus 2.9% in only a couple days here. But, we're going to look out to October 16th expiration here. Our yellow box plus or minus about 9.8%.

So, the news does not seem great. The uh, situation with diesel fuel and uh, these other factors doesn't seem like it would is going to be resolved tomorrow. So, perhaps a more bearish trade that would capture our next earnings event on the the 15th of October.

So, plus one October 16th 230 220 put vertical at a 340 debit. Bearish outlook, 29 days to expiration, max loss 340 is our debit paid, max profit is 660. So, almost one to two in terms of risk to reward here.

Break even 226.60, about 4.8% to the downside, expected move about 9.8%. So, it would capture that pretty well.

Um, our uh, 220 uh, protective strike there is about uh, 8% or so to the downside. So, it would take a bigger than expected move for us to kind of cap out and not gain any more profits after hitting our strike there.