By Chuck Lebeau
There have been many market segments that have rallied substantially over the last two months but as might be expected it is the tech stocks and banking stocks that have received the most attention. The quiet rally in more mundane areas like coal has mostly gone unnoticed. Perhaps we can borrow a miner’s helmet lamp and shine some light on these stocks.
In just eleven market days Foundation Coal Holdings (FCL) leaped from $14.65 to a May high of $31.54.
Peabody Energy (BTU) has see-sawed its way from a March low of $20.17 to a May high of $34.15.
James River Coal Company (JRCC) has crept from a March low of $8.85 to a May high of $24.00 for an impressive gain of 171%. And the leader of the pack, Patriot Coal Corp (PCX), has recovered from a March low of $2.76 to a May high of $10.28. That represents a quiet gain of 272%. And representing the general strength in the coal stocks, the Market Vectors Coal ETF (KOL), has climbed from a March low of $10.88 to a May high of $23.20.
Prudent investors may want to avoid excessive risk in these stocks and a new service, at www.SmartStops.net can help. Like the proverbial “canary in a coal mine” SmartStops can alert you when the stocks are getting into trouble. According to the most recent SmartStops data the critical levels to watch are: FCL if it drops to $19.10, BTU if it drops to $28.40, JRCC if it drops to $16.72, PCX if it drops to $6.40 and KOL if it drops to $18.31.
Note: SmartStop alert prices change daily. For up to date daily alerts visit www.SmartStops.net
