What have been up more then 100% since April? Coal stocks. But, all the heavy hitters have reversed off early morning session highs today with increasingly heavy volume. It is time to wave the caution flag.
A climax run is when a leading stock opens the day at new highs and reverses on extremely heavy volume to close down. This huge volume, highly volatile day typically comes after the stock has had a very big price run up over the last month or longer.
Below I have three leading coal stocks to show. Especially take a look at JRCC's stock chart and look at the volume today, which is the highest it has been since August of 2007.
yup good call. big reversals look to be coming here, as its well due for a pullback and only healthy.
That is a good point I should have mentioned, only healthy for these coal stocks. Should be interesting to watch.