Is the Coal Trade Overheated? A Look at 13 Coal Companies
The majority of these coal stocks are overbought. While they also look a tad toppy, they may still be worth watching for an entry on a pullback. I would not short these here as their seem to be some fundamental demand driving coal right now.
I did a cursory google search, and I found this article to be helpful in understanding what is driving coal skyward.Ă‚Â The Oil Drum:Europe | Coal Crunch?Ă‚Â Also, I believe Lord Duc posted an article about China running their mines overtime.
Maybe you fundamental analysis types would do some research on which of the companies below stand to benefit the most from the recent rise in coal demand.
I will watch these for a pullback and look to enter if the technicals and fundamentals are still compelling.
(ACI: 24.59 -5.39%)
(ANR: 50.15 -4.89%)
(BTU: 48.11 -3.26%)
(CNX: 47.43 -2.37%)
(FCL: 35.93 0.00%)
(FDG: 0.00 N/A)
(ICO: 4.64 -1.49%)
(JRCC: 16.75 -4.12%)
(MEE: 51.65 -2.82%)
(NCOC: 0.61 -3.17%)
(WLB: 12.88 -5.36%)
(WLT: 85.95 -3.12%)
(YZC: 22.28 -0.22%)
Great work Woody, some of those chats look pretty damn good.
Nice work, Woody. I like to trade this sector because they all trade in lock-step mostly, even intraday.
JOYG is another interesting play on the coal stocks, since they build the equipment that the coal miners need to extract coal.
-DT
I would just buy the new Coal ETF (KOL). The volume in it seems to be picking up.
TC- I don’t like KOL very much yet as it is so new that it is hard to judge from a technical perspective.
Also, for you traders, $SCP is the coal index on esignal…
I used $DJUSCL for a really long time, but it only updates once every 5 minutes or so… $SCP is every few seconds.
-DT
Wood,
Approximately 1yr ago, coal & coal stocks were the worst performing industry.
That they are picking up in the face of oil prices is not surprising.
China, hugely energy sensitive, will burn coal irrespective of environmental consequences, much the same way Europe and America did in the 1850’s-1930’s
jog
ducky,
Coals underperformed in 2006, but only after kicking ass in 2005. They’ve been pure gold since 2003, really.
-DT
I pwned Ducati.
-DT