Hamilton's E-Wave Analysis

CNR

From under $9 to about $70 in a little over 10 years is somewhere in the order of 24% per annum (rule of 72, 3x from 9 to 18, 18 to 36 and 36 to 70). Quite remarkable for such a pedestrian thing as a railway and that in an economy that is supposedly depressed. We are hitting the upper parallel trend-line after a 5-wave move up, that is high and time to sell.

The shorter–term chart does not count well and what is shown may well be wrong. Other, more complicated counts may fit but they go beyond my pay level. Suffice it to say that there is a very nice wedge running into the top. More detail below;

These only occur in 5th waves which may mean that the top is already behind us. The Dow Jones Transportation index provides little confirmation;

This one may go higher yet, but it is only a couple of hundred points from the old top, quite amazing with fuel costs where they are but that would make the trains relatively more attractive, which explains why has outperformed, but enough is enough.