Coal, Kinross Gold and Frontier....again !
Funny how in a bull market all pullbacks are to be bought when the stock is named Apple or Google, or Dell bit in a commodity bull market the same doesn't apply. Sorta like selective application of the rules maybe. Could it be they (TV gurus and the like) plain old don't like or understand a commodity bull? Either way the Coal chart (above) looks to be in bull mode. Yesterdays hanging man candle caught my eye and is reminiscent of the bar on June 4. Coincidence or not, both occurred on heavy volume and I am enamored of this picture.
I am getting long 1 unit of the Market Vectors Coal ticker KOL at $55.60 with a sharp eye to adding a 2nd unit on a move above $57.60. which would take out the high of that hanging man.
Kinross Gold (above) looks like it wants to run. I have highlighted a larger possible bull flag formation of a 3 month duration, the topside of which is under assault today by the gold bulls. A move above the 22 level would be a nice comfort to this trader.
Are you sick of this one yet? Frontier Oil is a wonderful heavy oil refiner I, for some reason, have a crush on. Call me crazy, believe me many have called me worse, yet I see a double bottom forming knowing full well a larger double top could loom above. The high volume run up in May and the lower volume pullback here in June has my antennae up.
I am getting long 2 units here of Frontier ticker FTO at $25.15 with a stop at $23.46. Maybe this venture will be different than the last few.
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