• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 10 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 23 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 5 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Martin Tillier

Martin Tillier

More Info

Coal – Don’t Try To Catch A Falling Knife

When a particular market or stocks in a particular industry have been under pressure for a while traders and investors tend to search for some good news. Maybe it is the natural human disposition towards optimism or the inherent love of a contrarian trade, but the worse it gets the more likely a relatively strong rally on anything remotely positive becomes. This can produce great results for those that bought on a “how low can it go?” basis, but for the rest of us it can be a dangerous time. The negatives that caused the drop get forgotten as the narrative changes and it is easy to get swept up in the new optimism and buy in, even long after any value that there may have been has disappeared. That is where we are right now with coal stocks, but investors should resist any such temptation.

Immediately following the election most coal stocks jumped significantly. That was an understandable reaction. After all the President elect described global warning as a hoax perpetrated by China and promised to revitalize the American coal industry if he were elected. Then, as that initial rally quickly faded it was given another boost Mr. Trump nominating Scott Pruitt, a prominent climate change skeptic and legal opponent of the EPA in his role as the Attorney General of Oklahoma, to head up that agency. There could be no clearer message than that the future President Trump intends to foster an environment that is extremely friendly to coal companies.

The problem,…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News