Railroads Surpass 2008 Highs

11/02/2010 9:59 am EST

Focus: STOCKS

Thomas Aspray

, Professional Trader & Analyst

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The Dow Jones Railroads index closed last week above the 2008 highs, thus establishing new all-time highs. Clearly this has been one of the strongest industry groups, up 164% since the March 2009 lows. The railroads completed a consolidation pattern in September (green lines), signaling a resumption of the uptrend. The relative strength (RS) line bottomed in 2009, indicating that the railroads were starting to outperform the S&P 500. The RS is still in a solid uptrend. For more on the transportation stocks, sign up to receive this week’s Trading Lesson.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

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