Monday, November 10, 2014

Which Is It Going To Be, A Bullish or Bearish Trading Strategy?

What is the direction of the market?

While we are seeing record highs in the Indexes and many are saying that the market will fall, there is one area that is growing significantly and may be a leading indicator of sorts.

And that area is what is happening on the train tracks.

While traders are busy looking at and studying analyst recommendations we can also be checking out the reports on railroad traffic to get an idea as to economic health.

I have a couple charts that I will post in here, they show that growth is occurring in several areas.

This next chart is telling. Railroads have been hiring for the past couple years. “The demand for moving freight by rail will continue to grow, and railroads are looking for good people to help them serve customers and power the nation’s economy,” said AAR President and CEO Edward Hamberger. “We have been short of train crews,” the Union Pacific’s chief operating officer Lance Fritz, said last week. “We have more than doubled the hiring we originally planned.”

A quick look at these charts indicates that things remain positive for investors and that may mean that for at least a while we can be employing a bullish trading strategy. Perhaps a person that analyzes fundamentals has to check the railway traffic for different industries as a basic for his projection.

And finally, this chart, the AAR Weekly Traffic Report

Good Trading to all..!

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