Commodities Class: Coal
Aaah yes... finally !
The scourge of liberal dreamers and global warming snake oil salesmen.
The delight of evil American business men, with their shiny watches and gas guzzling street tanks.
Topic #5
Coal
Thanks to record rainfall in the Australian region of Queensland, (the size of Germany+France and then some)local coal mines have been brought to a standstill pushing prices to nearly $120/ton.
Of all the bubbly commodities out there, coal may be the most likely to blow in 2011.
I am generally not a big fan of advocating individual investors, but when Daniel Rice of BlackRock speaks, I tend to listen.
So here's the million dollar question: do the words of a guy who's beaten 99.9% of U.S. stock fund managers over the last decade mean anything? Better yet, how much?
I don't think there's any doubt coal's going up, but just how high is the name of today's little game.
Random Ranting Digression Warning!
I personally get sick to my stomach when I watch the pathetic green energy marketing campaigns blame coal for the death of every tree, sea urchin and still born fetus on earth.
Though I am willing to admit that coal's not exactly something I want to be shotgunning to the lungs on a regular basis, it is still the world's #1 power source and in spite of this looming bubble...it's most affordable.
Here in the U.S. coal continues to maintain its grip on the all-around energy throne in spite of a bevy of competitors eternally attempting to unseat it.
So here's your chance guys, tell me about coal.
What's it doing? Where's it going? and most importantly...
How much are ya buyin'?
For those of you planning on being in Houston next month, I'd suggest paying close attention to the comments.
Darn it Midas... don't go wrecking the easiest commodities trade of 2011! (joking of course)
Based on the 2008 commodities bubble, and debt ridden western governments trying to squash "government spending", that might spell bad news for 2011-2015 alternative energy subsidies.
Plus, we've only recouped ~50% of our gains from the 2008 commodities (coal) bubble, so based on pure technicals, we still have some upside. Technical traders appear to rule the markets these days, and if enough speculators manage to coalesce at the right time, the 2008 highs seems reachable. If you play along, just be prepared to sell at the drop of a hat.
Good job staying compliant haha j/k But on a serious note. I never traded the stuff but I am interested in reading a few point of views on this. It might actually be worth some looking into......
I'm neutral on coal until I see how Natty gas moves
With China and India building new coal fired power plants every few days and almost every emerging market relying on the coal as a cheap power source, I only see coal going up.
Coal explosions are fun to watch.
According to wiki: Coal can spontaneously ignite when exposed to oxygen which causes it to react and heat up when there is insufficient ventilation for cooling
http://www.myspace.com/video/vid/46657272
Coal is the reason the southeastern states have such cheap electricity prices. Well, that and the fact they cannot legally export power. They can import power though. Perhaps a higher price of coal will increase the level of imports from surrounding regions?
Midas - KOL's been retreating quite a bit lately... are you still bullish?
Coal is on the move again anyone have any ideas as to why? EEE? Seriously they can thank Lazard for there ridiculous price. Horrible fundamentals
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