Rail Traffic Nears 4 Year High at Value Plays.

First, this is a function of the U.S. private sector economy being decent (Mark Perry).  “If you are looking for better-than-expected global economic indicators, welcome home; they are mostly here in the US.”  (Yardeni).  Even the Michigan Economy Shifts Into High Gear (Mark Perry).  Lumber:  Financial Post.

Much of the shale oil growth is being transported by rail too; see what Statoil is doing.  Crude on the rails: in for the long haul at the Financial Post.  It’s not just the oil either, the frac sand needs to be hauled too!  Star Tribune.

Week old charts by Greg Harmon and Chess.

In short, coal is down while oil, cars and lumber are up.  The strength of the rails is remarkable in the face of coal being in a depression.  Remember, a significant portion of Appalachian coal will not return to market in a rebound, while coal haul distances will increase as exports increase.

The rails are worthy of more investigation!