Seeking Alpha

Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • Market Notes: Coal Getting Scuttled -- June 11 2 comments
    Jun 11, 2013 6:27 PM | about stocks: YZC, BTU

    The SPX appears to be forming a downward trending channel with 1650 turning into a key resistance level. If it can't manage to break through that shortly, a retest of 1600 is in order. A drop below this level would signal that the bears have gained control meaning that this summer's market road trip could be a bumpy ride indeed. Today's jump in volatility is indicating that the bears are indeed gaining the upper hand. Unless there's some unexpected good news looming on the horizon, I expect a retest of 1600 before 1650. All of you short-sellers should be gearing up for a breakdown because if it's to happen, it appears as if it will occur sooner rather than later.

    One place to look to take on short positions is in coal mining stocks such as Peabody Energy (BTU, $18) and Yanzhou Coal (YZC, $9), both of which gapped below major support levels today to hit new multi-year lows. The coal-based energy era is waning and is being replaced by natural gas and renewable energy sources. Remember what happened to buggy whip makers when the Model T began rolling off the assembly lines!

    That's it for now.

    Subscriber Notes: There is one new Stock Darling.

    Themes: coal mining, short ideas Stocks: YZC, BTU
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • johnbarleycorn
    , contributor
    Comments (118) | Send Message
     
    The buggy whip makers switched to making them for the adult book stores...?
    12 Jun 2013, 01:47 PM Reply Like
  • Dr. Kris
    , contributor
    Comments (319) | Send Message
     
    Author’s reply » Ha!
    12 Jun 2013, 02:27 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Instablog problems: I'm trying to post an instablog and the system just hangs. Anyone else having this problem?
    about 8 hours ago
  • Intraday support/resistance: $SPX 1986.75/1994.75, $DTX 841/848, $DJIA 16985/17065, Nasdaq 4514/4536, $RUT 1147.5/1163.5; $VIX 11.45/12.05
    about 12 hours ago
  • Intraday support/resistance: $SPX 1977.75/1986.25, $DTX 840.5/848.5, $DJIA 16895/16985, Nasdaq 4516/4533, $RUT 1154/1159: $VIX 11.85/12.25
    1 day ago
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.