Saturday, January 28, 2012

20120127 Weekend, Gold $2111, Rail Cars

Dow 12,660.46 -74.17
Nasdaq 2,816.55 +11.27
SP500 1,316.33 -2.10
30-yrBond 3.0640% -0.0260

With the Fed extending ZIRP and markets not zooming higher, they are giving a feeling of heaviness. Am biased toward downside on the indices.

Jim Sinclair wrote that $2111 will be the next temporary wall for the price of gold.

GLD 168.97 +1.70
SLV 32.96 +0.53
PTM 20.58 +0.59
XLE 71.48 -0.15
XLF 14.13 +0.05
VXX 26.07 -0.57

SBSA 6.15 +0.01. Spanish Broadcasting System. Big moves this week. 52 week range 0.95 - 12.10.
UNG 5.88 +0.26 (4.63%). United States Natural Gas Fund. 52 week range 4.98 - 12.64. May be off the bottom (at least temporarily).

This article Buffett's Burlington Northern Among Pipeline Winners (the original disappeared at Bloomberg) discusses rail traffic and oil pipelines.
Tanker Car Bottleneck
Investors such as John Stephenson, who helps manage $2.7 billion for First Asset Management Inc. in Toronto said he anticipated the project would move forward next year. Pipeline shipping costs remain lower than rail, and a lack of readily available tanker cars may create a bottleneck.

The availability of tank cars may create a temporary "hiccup" in transport capacity, according to Tony Hatch, an independent railroad analyst in New York. Rail cars are "a pretty hot commodity," as a result of demand from oil producers in North Dakota, he said.

Rail car production is already at a three-year high as manufacturers such as Greenbrier Cos Inc. and American Railcar Industries Inc. expand to meet demand for sand used in oil and gas exploration, according to Steve Barger, an analyst at Keybanc Capital Markets Inc. in Cleveland, citing Railway Supply Institute statistics.

ARII 26.60 +1.22(4.81%). American Railcar Industries. May be making run for 52 week high. 52 week range 13.68 - 29.48.
GBX 22.93 +0.04. Greenbrier Companies. 52 week range 10.38 - 30.38.

EEP 33.33 +0. Enbridge Energy, L.P. Class A C. 52 week range 24.66 - 34.58. 6% dividend. Enbridge bought a stake in the Seaway Pipeline from Gulf Coast to Cushing, Oklahoma. They will reverse oil flow to send oil to the Gulf.

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