Despite the main equity market building gains into months end, the coal miners remain an especially battered sector. Alpha Natural Resources (ANR) and Peabody Energy (BTU) ended the week badly, -5.1% and -3.2% respectively.
The daily charts look bad, but...the monthly cycles really put things in perspective...
*please note, the upside targets are 'on HOLD', but I thought I'd leave them on the charts...
I remain cautious about ANR (in terms of possibly imploding), although I have much greater concern about Arch Coal (ACI) and Walter Energy (WLT).
I am still bullish in the long term for coal, after all it remains a relatively cheap and plentiful resource, and at some point, even the US Govt' will cease trying to curtail its use.
I have no interest in picking up any mining stocks in the immediate term, not least since I still believe Gold will eventually break into the low $1000s..perhaps the 900s. Until the precious metal prices floor..the mining stocks are not going to be able to begin a new multi-year ramp.