One Tough Bull

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This market continues to punish those looking for an imminent rollover, as exemplified by the price action this week. Even when the market looked a bit tired on Tuesday and Wednesday, there was simply insufficient selling to really pull us back for any kind of correction through price. instead, we are broadly consolidating sideways, through time. Indeed, there is a huge difference in this type of a market between trading in and out of positions, heavily long one days and lightening up the next, versus being outright bearish and fighting the prevailing trend.

When the sideways action happens in lieu of a steep price pullback, what you are looking to see are some of the laggard attract capital from the extended, obvious winning sectors. One of the notable losers of late have been the coal stocks. Looking at their individual charts, such as ACI ANR BTU CNX PCX WLT, they all look the same to me, as they have essentially gone dead for several months now, basing along sideways after crashing last summer and fall.

Accordingly, I am keying off the KOL, ETF for the coal sector, so as not to miss an opportunity here. You want to see that $35 support trendline hold on the weekly chart if the bulls are going to make a push higher here.

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