Monday, February 11, 2008

I Keep Waiting for the Pullback in Arch Coal (ACI) That Never Happens

Posted by TraderMark at 10:22 AM TweetThis
I've stated a few times in the past week I want to add some more coal exposure, and Arch Coal (ACI) is the logical candidate, as it is the last major US producer I don't own. This chart tells the story. However, I like to buy on pullbacks... this stock refuses to pullback. Amazing strength in a terrible market over the past 6 sessions. Since I've been watching for an entry it's jumped from $45 to $53, or nearly 18%. Ugh.

No position


Posted by TraderMark at 10:22 AM Comments (2) | Edit This Post | Create A New Post

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2 comments:

msuberri said...

Check out KOL!

February 11, 2008 5:28 PM  
TraderMark said...

Yes the whole group is doing very well.

I was in solar a year ago, everyone caught on about 6 months later. I was in fertilizer last spring, everyone caught on about 6 months later. I was in coal last fall, and everyone is catching on... well about 6 months later. I am noticing a trend ;)

Unfortunately the more people get into a sector the more uncomfortable I get because then we attract momentum traders and daytraders who create a lot of volatility and set the stocks up for massive downside moves if anything is disappointing. Still too early for this to happen to coal but I could see it happening in fertilizer by end of 2008. Solar it already happened. They will come and ruin any "hot" sector, eventually. But for now we enjoy.

February 11, 2008 6:01 PM  

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