Coal Stocks Are Exploding Higher

Looks like today is natural gas and coal stock day; I like the latter sector more, so I'll highlight some names there. Interesting behavior considering China is re-opening mines, [Aug 24, 2009: Bloomberg - Coal Rally Ending as China Shuns Imports, Opens Mines] thus reducing international demand, but with both natgas AND coal moving together, it is basically an investment call on the strength of the domestic economy (natural gas use is especially dependent on the local economy). Since you can see identical behavior, I assume some algorithm HAL9000 behavior i.e. if retail sales > X variable, buy coal and natural gas stocks.

Breakouts all over...

Sector ETF



Individual names

No position

Comments

[epeon:]

I personally like ARLP because it pays you a nice dividend while you wait.

Sep 17 02:07 AM

[one eye:]

Thanks, Seeing sector rotation early is always appreciated. I'm heavy into LNG because I see a greater Worldwide acceptance ot Nat. Gas use in areas which were unable to gain access or maintain access previously.

Clean Coal technology is gaining acceptance in the developed Industrial countries, especially Europe. This could be why both are rising.

But the real perception implied in Coal's move is probably the increased Global expectation that Steel demand is rising.

Sep 17 04:13 AM

[YoYoMama:]

Also, NRP and PVR are good coal dividend plays.


On Sep 17 02:07 AM epeon wrote:

> I personally like ARLP because it pays you a nice dividend while
> you wait.

Sep 17 09:27 AM