Coal Climax Run? Caution Flag Waves
Posted on Thu 19th Jun, 2008 04:01:34 PM
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.
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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.