This Year, Hope Santa Leaves Coal in Your Stocking
Smart investors will appreciate a gift like coal as there are major opportunities right now.
The only individuals who would appreciate a gift like coal would be those forward-looking investors who see major opportunities before they become the next big movers and headline news.
Knowing how to spot Stage 1 patterns is one of the most important bits of information you need to know as an investor. My main focus is on ETFs. They provide lower risk but are very powerful when applied to individual stocks.
Coal and coal stocks have been out of favor for almost two years now. But these unwanted and hated shares may soon be owned by the masses, or at least by traders and investors. (A few weeks ago to I talked about the four stages all investments go through and which patterns you must be able to spot in order to make huge money investing while having very limited downside risk in How Traders Get Wealthy Playing Apple, RIM, and Gold Stocks.)
In summary, trade with the NYSE big board, and only focus on buying stocks, ETFs, etc. as they are coming out of a Stage 1 Accumulation Basing Pattern. This puts the odds greatly in your favor for not only winning the majority of your trades, but for generating above-average returns.
The Big Board – NYSE - Weekly Major Stock Market Trend
This chart formed a reversal candle last week, which points to lower prices. It's likely we see a one- to two-week dip before buyers step back in. Until then, individual stocks should pause or form mini bull flags until the sellers are finished and buyers step back into risk on assets (equities).
Coal Sector ETF Showing Stage 1 Basing Pattern
Coal stocks have been bouncing bottom for some time, and if you did not review the Stages Report using the link above then do so now so you know what to expect in detail.
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