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It’s not surprising that when gold and silver and the rare earth metals begin to take off, the other commodities begin to show perky life as well. “b
In one case, the “black gold” coal commodity play is beginning to take off again. Consequently, I’m going to reintroduce a rocket that failed on me recently, but which I am willing to give another try given it’s action the last couple of days. That rocket is the mercurial PCX (Patriot Coal):
Who says I don’t like to pick the Patriots? Heh.
Next I’m going to look at another old gold favourite NGD which has finally broken out (two weeks ago now) and is looking to at least equal old time highs:
Those more recent highs are at $14. I think we consolidate there and get ready to dig clams immediately upon resumption of the up move.
My last chart should be familiar as I posted it just the other day. It appears my call on REE at the $6.05 pullback was a correuct one and now REE has broken resistance after a short consolidation.
Not quite sure how far this one will launch this late in the cycle, but I think that all the rare earth metals will continue to rally. REE is one of your stronger plays in this space.
My best to you all, and good night. I’m feeling zombie-tired and I need to store energy for the SuperBowl.
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Thanks man. Get some sleep now.
Thx, Jake, enjoy the game!
Regarding $PCX: From your mouth to gods ears. MACD is sure going to go in one direction real soon me thinks. A short-term target to $12 I don’t think is unreasonable either…got a gap to fill up there, eh?
You mean that island top from back in November? Yes.
I don’t think the 200-day EMA is out of the question here.
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Eggsactly.
Good buddy of mine works for PCX managing an underground mine. The machines they have out there are MASSIVE. I saw a strip mining excavator that was 10 stories high and as wide as a city block, operated by 1 man. God Bless America
JOYG!
Yeah, those feckers are huge. CAT and JOYG can thank the United Mine Workers for that business. 😉
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That’s unbelievably huge! My father worked at a strip mine in WY for a year or 2 as a dragline operator and those I thought were huge (some more than others I suppose). I also grew up near 2 mines NW NM and seeing those dumptrucks too are big, but not as big as some I’ve seen on the teevee. I guess it just puts things into perspective.
I would not put any money in coal. NG is too cheap now and looks like it will stay cheap for some time to come.
The Chinese are actually importing our coal, if you can believe it, despite the sea voyage.
That, and the fact that 50% of our power plants are still burning the stuff puts a floor underneath.
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As a toll booth on coal to China:
WTE.tsx
Torontah (sic)??
I need stuff that trades on more liquid exchanges. Any chance they might do the AMEX listing shuffle?
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Hey Muk … You get any GSFVF?
Yup – they had some crap execution in 2011 but in their defense, lots of wells scheduled for fracking in S Alta and Sask were under water (literally). Husky backed out of some fracking 4Q2011, but that again could have been weather related (too warm, no frost). I’m going fishing in CR with a head field guy for the biggest O&G service Co. so want to pick his brain about NGL fracking. Apparently there are some foam fracking protocols that offer competition to GFS’s propane system and they are cheaper. I’m holding a 1/3 position after trading GFS a few times over the past year.
On another front, not AVL but GWG.tsx. These guys are small cap = $250m but seem very liquid with 500k shares daily vol. They PROCESS rare earths in UK and Mich. Are in the middle of assaying rare earth potential in an existing (maybe old) mine in S. Africa. I’ve had it on a back burner for about a year. Last night on BNN it was an analyst’s pick and the guy (Whirtner?) made the case for it by saying that 80% of the revenue in rare earths was in the PROCESSING not the finding of the stuff. Anybody know anything on this thesis? It was up about 7% Friday.
I’m not saying coal is going to -0-. But with cheap NG there will be little or no growth in coal going forward, imo. It’s cheap to put a gas burner into a boiler. Not optimized perhaps, but cheap and no scrubber needed. The largest coal burning plant in my State is being shut down, and a new coal shipping port established. (with much enviro opposition)
So I agree with you in part, but see limited upside for coal at this point.
Your far more inexpensive plant is being shut down because of the Obamanite Environazis currently running roughshod over the utility industry via the EPA. How much longer do you think they’ll have unrestricted power, even IF the Zero get’s re-elected?
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NG plants are inexpensive. Cheap NG limits coal.
SO buy ECA … 98% NG
I know it’s not a precious, but check out the chart on CFNL. It’s one I’ve held for a long time without much to talk about. But it’s approaching a long term resistance (~$12). Could be free air on the other side.
I’ll take a look… that’s the DC bank, right?
Damn well should be doing well… only city in the country that is, thanks to the vultures…
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yeah, DC area bank (Cardinal Financial). Not huge volume but worth a look.