We have updated our privacy policy and terms & conditions. Find out more here.
16
 

Coal Turn Signals Impending Bounce

By Jun 12, 2013 05:48PM GMT Add a Comment
 
AA
+
-

There is money to be made and I intend to make it. Being long on coal stocks for the next week is where the money appears to be lurking in an otherwise poor market. That's due to the strength we're seeing in stocks like Cliffs Natural Resources Inc. (CLF), Peabody Energy Corporation (BTU) and Walter Energy, Inc. (WLT).

Wednesday Marks The Turn
During the past few weeks, these stocks have traded far weaker than the general market. However, we are seeing a turn. The coal stocks are mostly flat-to-higher while the SPDR S&P 500 ETF Trust (SPY) is trading at $162.25, -0.87 (-0.53%). In comparison, Cliffs Natural Resources is trading at $17.56, +0.06 (0.34%).

The Turn
This is known as a turn and occurs when weak stocks that have dropped significantly make a turn, now stronger relative to the stock market. It usually signals an impending bounce in the sector, especially on any stock market bounce.

Cliffs Natural Resources
Cliffs Natural Resources

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Walter Industries Inc
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg