This Year, Hope Santa Leaves Coal in Your Stocking
Smart investors will appreciate a gift like coal as there are major opportunities right now.
Naturally I would like to see a bull flag or pause in KOL over the next couple weeks, then look to get long using the pivot low of that pause/bull flag as my protective stop. I’m not jumping in here as the broad market looks ready to correct and three-quarters of stocks follow the big board, which will pull KOL down.
Alpha Natural Resources – My Top Coal Stock Pick
I pointed out Alpha Natural Resources (NYSE:ANR) at $7.50 at the beginning of December to followers as it was the best-looking coal stock I could find. The two key indicators, price and volume, were clearly pointing to higher prices, and the potential gain -- even if it was just played up to the Stage 1 Resistance Level -- still netted a 30% move. The crazy part is that there is the potential for a 100% rally to my first price target.
You Want Gizmos or Coal in Your Stocking?
In short, I really like the coal sector for the first quarter of 2013. I’m not too worried about the fiscal cliff as it’s not the end of the world, and the US, along with most other countries, are all bankrupt together, in my opinion. New rules and ideas will be implemented and life and business will continue.
I am expecting stocks to continue sideways or higher into May at which time a serious correction could take place. But not to worry as we take things one week at time. I will be adjusting my outlook accordingly.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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