After pulling back in October, all the rails have gone on a major rally from the lows. Canadian National Railway (CNI) is one of the most efficient railways. This particular stock is returning back to some of the highest closes in September before it pulled back. We can see today was a big bullish wide ranging day. The SCTR has returned to be one of the top 25% and today it was just shy of being in the top 10% of the large cap stocks. We can see on the indicator panel below it continues to outperform the S&P 500 ($SPX).
After Bill Gates and Warren Buffett flew up to the oilsands for a tour two years ago, they have steadily been investing in the oil companies like Suncor and infrastructure like Canadian National Railway (CNI). As the stock tests its former high, it looks well-positioned to continue the up trend.
Good trading,
Greg Schnell, CMT
