There’s not a whole lot to report in terms of market signals as my indicators are still bearish. They’re improved, but still no need to go long at the moment.
I just wanted to look at yesterday’s sector winner in terms of % mover and ask you if this looks like a chart (click to enlarge) pattern that you would feel comfortable buying? It’s possible we rally some more, but this chart in my opinion does not have a good edge in terms of going long.
I just checked on the 5 biggest winners within the sector (Patriot Coal (PCX), Alpha Natural Resources (ANR), Massey Energy (MEE), International Coal Group (ICO), ARch Coal (ACI)) and they all have below average volume. When you add in the anemic volume on the indexes yesterday it paints a much bleaker picture.