SELL USO AND SHORT CNX (CONSOL ENERGY )
Our proprietary money flow indicators have turned negative on oil. Sell all long positions.
We will not yet short oil because slight geopolitical hiccup can make the oil spike again. However ,it is finally time to short coal. Coal prices compete with natural gas for electricity generation. Natural gas prices have come down and with the discovery of massive finds in a number of shales, natural gas prices are likely to stay down, thereby putting pressure on coal prices.
Another reason for spike in coal prices has been the potential huge exports to India and China. Market’s export story is misplaced in the longer term context.… Please click here or the title below to read more.
July 28, 2008