Tuesday, April 10th

Dear Member,

Today is a great time to write about coal. Three of the largest coal stocks in terms of market cap are:
Peabody Energy Corporation (BTU)
CONSOL Energy Inc. (CNX)
Arch Coal Inc. (ACI)

They have all fallen at least 30% since last May. A huge drop!

After all, they all rallied between 30% and 100% the year before.

What's starting to happen is that coal stocks are all gaining relative strength compared to the market just like metal stocks. Just like oil stocks. Just like stocks that have anything to do with digging something up out of the ground.

Sure, they haven't even come close to their highs of last year, however, all three of these are definitely worth watching for ideal entry points on pullbacks. You know, to be the first genius for the next rally (see yesterday's commentary).

So, this is an area that is starting to come back into favor. However, once you see it on CNBC with a big segment on "The Coal Rally", you will have already missed the move. We are going to get into these stocks sometime between now, and the obvious report that will be months down the road. I am just waiting for the inevitable pullback.

Good Trading,
IntradayTrades