What’s In Your Stocking?

Coal is classified in the energy space, which pretty much across the board was weak Wednesday. You can include uranium in that as well, most notably with CCJ which is now a quick 14% off most recent 52-week highs. Cameco last week recorded a bearish shooting star candle. But coal names which have been on fire in 2023 have been due for a retreat and it looks like that may be underway. In no way am I bearish on these names, and I think they should be bought on pullbacks, but not quite yet. Below is the chart of CEIX which is up 50% YTD and this week is feeling the heat off 7% heading into Thursday. It has gained ground 14 of the last 18 weeks nearly doubling in the process. Many of these names in the coal arena bottomed in late 2020 just when the KOL was shut down, talk about great timing, and that includes AMR which traded with a one handle, not a typo, during COVID and is now well north of 200. The name that has not been invited to the small select party has been BTU. It is still negative YTD as peer AMR is higher by more than 60%.

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