Railroads Are A Wreck

Posted on Jun 25 2015 - 10:32am by Sharpe Trade

The railroads are getting decimated.

Union Pacific (UNP) is down nearly 20% from it’s highs this year.  Norfolk Southern (NSC) is down over 20% from it’s highs.  CSX is holding up better than others, down around 7%

As a guy who owns Union Pacific (UNP) pre-split … I say …

Good.

Let em’ burn.  The end of this downtrend is not yet in sight.  We have farther to fall.  I see Union Pacific (UNP) easily hitting $96.50.  That wouldn’t surprise me in the least.  Since I owned Union Pacific (UNP) before the redonkulous train-rally of 2014, pre-split, I’m still sitting on great gains (25.88% if you must know, in an income account of all things), with a great yield that the split has helped to accelerate.

Just let the rails run lower ladies and gents.

All the while, knowing I have a nice pile of cash, ready to deploy when the mayhem is over.  

3 Comments so far. Feel free to join this conversation.

  1. Brian June 25, 2015 at 5:09 pm - Reply

    Meanwhile, the broad market continues to churn. It’s just been tug of war back and forth across the 2100 line in the good ol’ S&P 500.

    “All the while, knowing I have a nice pile of cash, ready to deploy when the mayhem is over”

    Now that can be a beautiful maneuver.

    Dan, have you been trading commodities other than PMs much this year? Oil and natural gas have really been bouncing around.

  2. Dan Shy June 25, 2015 at 6:57 pm - Reply

    Heyya Brian,

    Good hearing from ya.

    No, not much trading in the commodities space. I looked at Sugar, and man, that thing just will NOT stop falling.

    Hard to believe that we’re at the end of June now, and in essence, the equities market has gone absolutely nowhere. What a meat-grinder …

    D

  3. Brian June 25, 2015 at 7:21 pm - Reply

    Kenny hasn’t been ecstatic about this market, either. But he’s hanging in there trading reversals he likes. Has some complaints about his wife, though. haha.

    Have you checked out his pals at Sang Lucci? They’re primarily options traders and have also mentioned this year’s chop a number of times on their YT videos.

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