By Nicholas Santiago
| Stock Markets
| Jun 12, 2013 05:48PM GMT |
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%).
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
Chief Market Strategist
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