Monday, December 8, 2014
Railways dropping alongside oil again
Well, the transports index doesn't look that bad:
But that hides some horrible weakness in rails.
CN is caving in.
Norfolk Southern is caving in.
And even Union Pacific, greatest railway in the US, is getting a bit of a beating today.
Because, I guess, oil is down and therefore... reasons, or something.
I'm getting more convinced that we'll see the US market roll over for a bit. Because, again, reasons. Also, HYG is rolling over too.
Cheap oil is fantastic for the US, but that won't matter to the market til everyone's finished repositioning. Til then, chaos.