Coal Stocks Catch Fire
From the Desk of Ian Culley @IanCulley
Forget about the selloff in Bitcoin for a minute.
Coal stocks are ripping!
Perhaps they’re giving back some recent gains today, but most stocks are.
More importantly, Monday marked the largest one-day rate-of-change for our Coal Index since 2020…
If you’re wondering why we created an index of coal stocks, the answer is simple: The December 2020 delisting of the VanEck Vectors Coal ETF $KOL forced our hand.
They shut down the only coal ETF just as commodities began ripping (many toward new all-time highs). You can’t make this stuff up…
One of our favorite names – Alpha Metallurgical Resources $AMR – has gained over 4,000% off the December 2020 lows. Unbelievable!
Almost four years later, the rally isn’t over for these names.
Our coal index is on the verge of kicking off the next leg higher:
In this week’s commodity trade section, I’ll review the six coal stocks from our index, outlining critical levels to trade against and logical areas to take profits.
Let’s dive in!
COT Heatmap Highlights
No report today. The CFTC will update the Commitment of Trader report on Monday.
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