Outtake:It is kind of crazy to think that someone would shell out billions in this environment to buy a railroad when loads are way down. This purchase also saved the transports index from a complete breakdown which would have, according to Dow Theorists, a broad decline in all of the markets. Whether or not this was a good move, I do not know since I do not follow the railroads, but I do know that it temporarily saved the transport index as it is up pretty big today.
If one wants to draw a conspiracy theory to all of this, they could very easily. After all, Mr. Buffet is very close to the Obama administration and he did invest heavily last year knowing things were very bad, worse than he let on. He also did this on the day that the transports were about to meltdown as well, so, as I said one could very easily draw conspiracy theories from this purchase. However, I believe the transports will still meltdown, it will just take a bit longer than expected.
As for the ISM data yester, as David Rosenberg put it, you got 55.9 from all those regional readings. Right, that is...
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