If that's the case, then investors will be breathing a sigh of relief. This recession has been very nasty and painful. And the effects of it will linger on for a while. In fact, CSX said that net sales plunged 23% and that volumes went down 15%. Earnings from continuing operations were 93 cents per share in the year-ago period. Does this sound like everything is going to be all right?

It doesn't, but Wall Street clearly believes that we won't be in such a bad state forever. CSX has seen its shares power higher after hitting bottom back in March.

Quite frankly, I think they could go higher from here. I just don't believe that CSX is done as a momentum play. Of course, back in July, I was admittedly wrong about the stock. Why was I wrong? Well, like a large number of observers out there, I keep waiting for this legendary correction to come. And it never does! Many expect the market to hit 10,000 before possibly heading down for a little while.

Who knows what will happen. No one can predict anything. All you can do is have a good strategy in place. With CSX doing well in yesterday's after-hours session, and with the CEO so optimistic, I say that CSX might make a potentially good trade. So long as you have an exit plan ready. Use a stop to get out in case the overall sentiment turns in the wrong direction. Perform a lot of due diligence before you make your decision. The markets are definitely at that point where a lot of due diligence is requisite.

Disclosure: I don't own any company mentioned; positions can change without notice.