Thursday, February 5, 2015

Canadian National Railway (NYSE: CNI)

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. It transports various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products. The company operates a network of approximately 20,100 route miles of track that spans Canada and mid-America, connecting three coasts: the Atlantic, the Pacific, and the Gulf of Mexico. It serves the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as the metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis and Jackson (Mississippi), with connections to all points in North America.
Take a look at the 1-year chart of Canadian (NYSE: CNI) below with my added notations:
1-year chart of Canadian (NYSE: CNI)
CNI has formed a clear resistance at $70 (green). In addition, the stock is climbing a short-term, uptrending support level (red) over the last several months. These two levels combined have CNI stuck within a common chart pattern known as an ascending triangle. Eventually, the stock will have to break one of those levels.

The Tale of the Tape: CNI has an uptrending support and a $70 resistance level to watch. A long trade could be made on a breakout above $70 or on a pullback to the trendline. A break below the trendline support would be an opportunity to enter a short trade.
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What the Aden Sisters Are Watching Before Jumping Back into Natural Resources

Technically, gold should be under $1,140 per ounce, but instead it is rising with the strong dollar. In this interview with The Gold Report, Pamela and Mary Anne Aden, authors of The Aden Forecast, see value in gold and silver and share their four favorite vehicles for gaining exposure to the upside in natural resources that is coming on the heels of a volatile currency upset.
The Gold Report: We only a month into 2015 and already the economic news has been dramatic. Switzerland decoupled the franc from the euro. The European Central Bank (ECB) has announced quantitative easing (QE). The Russian ruble is crashing along with oil prices, but the U.S. stock market seems to be soaring. What indicators are you watching and what are you expecting in the global economy in 2015?
Pamela Aden: Never a dull moment. The biggest beneficiary of all this turmoil has been the dollar. The dollar index is at 10-year highs. Meanwhile the euro and the Canadian dollar have gotten caught up in a deflationary cycle along with oil and commodities.
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NuStar Energy LP (NYSE: NS) Shares on the Rise

NuStar Energy LP is a master limited partnership based in San Antonio, with 8,643 miles of pipeline and 81 terminal and storage facilities for crude oil, refined products, and other liquids.
On Friday, NuStar, reported its Q4 earnings and other financial data which, if you've been following our research since oil began its slide last summer, is, in our opinion, the best way to tell which companies are going to survive this period of low prices.
It looks as though NuStar is one of those companies.
I'll share some of the highlights with you in a moment, but first let me say something...(more)

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Bulls Beware: Dennis Gartman Just Flip-Flopped To Bullish… Again / by Tyler Durden on 02/04/2015 13:21
Two days ago, just as the market was about to soar, we wrote “Shorts Beware: Dennis Gartman Just Flip-Flopped To Bearish” in which we wrote “just as it seemed safe to pile into shorts today… here comes Gartman with a note that makes a dead cat bounce virtually assured.”
Quoting Gartman:
“The S&P: This has the ominous look of what some of the Old Guard amongst the market technicians used to call “Three Peaks and a Domed House” pattern, which always gave way to substantive weakness. All we know is that Friday’s action was horrific and that the volume swells on the downside these days, and wanes on rallies!”
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JNUG: Are The Mining Shares Rolling Down The Runway?

If anyone has been watching the trading action of the mining sector, they’ll notice that the “character” of the action has changed since the end of December.  The way I expressed it to my fund partner the other day:  “Rather than shorting the rallies and covering the sell-offs, it’s time to start going long on the sell-offs and taking profits on the rallies” (while keeping a core position intact, of course).
It’s easiest to see this point illustrated using JNUG, the 3x leveraged junior gold miners index ETF.  JNUG has carved out a nice rounded bottom and appears to be grinding higher. The entire sector is behaving like this, but it’s easiest to see it visually using a 3x ETF graph:
Today is a perfect example, as the mining sector was hammered from the opening NYSE bell, with JNUG trading down over $3 from yesterday’s close (roughly 9.5%) to $30.15.  It’s rallied back close to $34, up nearly 1% now.  This trading action has been fairly consistent.
What’s even more striking, and something I had not really paid attention to until today, was the massive volume that has been occurring on a daily basis since early November.  This is the unmistakable of the last of the weak hands puking out their positions and the smart, patient money accumulating the shares.
I’m the first to admit that I’ve made so incorrect bottom calls on this sector since last summer.  But then again, is there anyone out there who can say they’ve succussfully been able to predict the direction of any highly manipulated market?   Having said that, I believe that the mining stocks may be rolling down the runway, preparing for a lift-off…
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