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Railroad Stocks Head South Fast, Watch This

Jul. 10, 2013 4:06 PM ETCP
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Seeking Alpha Analyst Since 2009

InTheMoneyStocks.com was established in 2007 with the goal of helping average investors compete and beat the Wall Street elite. Founders, Gareth Soloway and Nicholas Santiago spent years (prior to launch) developing the PPT Methodology, a simple way to analyze charts (stocks, commodities, forex, crypto… ect), finding the next directional move with a proven 82% success rate (94% for day trading). With tens-of-thousands of members since their launch in 2007, and many hedge fund clients, InTheMoneyStocks.com is now a household name with investors and traders all over the world. InTheMoneyStocks is one of the oldest proprietary trade alert firms on the internet, which shows the long lasting positive and profitable impact on the lives of our members. We pride ourselves on being transparent, open and honest, not only giving our live trades to our members, but teaching them how to analyze charts and learn how to find the next market cycle via the PPT Methodology.

One of the strongest group of equities has been the railroad stocks. This important transportation group lead the markets higher until May 21, 2013, when the railroad stocks topped out. One of the leading railroad stocks in the industry group is Kansas City Southern (NYSE:KSU). Today, this stock is trading lower by $3.16 to $111.79 a share. Swing traders should watch for daily chart support around the $105.50 level. This was an area where the institutional money defended the stock on June 28, 2013, therefore, support around that level must be expected. There will also be more daily chart support around the $100.00 level.

Some of the other leading railroad stocks trading lower today include Union Pacific Corporation (NYSE:UNP), Norfolk Southern Corp. (NYSE:NSC), Genesee & Wyoming Inc (NYSE:GWR), and CSX Corporation (NYSE:CSX). Traders and investors should also keep a close eye on the possible approval of the Keystone Pipeline which can transport oil and gas from Canada to Mexico. Last week, there was a deadly explosion of a Canadian freight train in Quebec, Canada. Oil pipelines transport oil much more safely than trains and ships according to most experts. Any pipeline approval will most likely hurt the share price of the railroad stocks. Watch this sector closely, there is some exciting action setting up.

Nick Santiago

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