Buckle up and get ready for a nice, smooth ride on the UNP Express.
The chart of Union Pacific (UNP) is magnificent, with higher highs and higher lows. One could get caught up in the overbought condition here, but that is where it might be premature to get bearish. Indeed, momentum is very strong, and if the market holds up we'll see the best names get the money. UNP would be in that category.
During the past couple weeks relative strength has pulled back modestly, but the stock remains above the key moving averages. Volume has dwindled a bit, but that's common during a holiday week.
We like UNP here; it's one of our best names, a "buy on the dip" stock.