Some very strange action today. Since winter is supposed to be cold (as I believe it has been the last few hundred million years) the natural gas trade is hot. Because natural gas is finally spiking, its ill effect on coal is waning so maybe the pressure there drops. Also some analyst came out saying somewhere in the supply chain of vast China there might be demand for metallurgical coal down the pike. That is spiking coal big time. Oh yeah, and Mitt Romney now loves coal since he dropped one line in the last debate. Since the analyst said China might increase steel usage – the steel names are running.
So we have a leadership group based on the fact (1) weather in winter is cold (2) some analyst thinks met coal / steel usage could be better "sometime in the future" and (3) Mitt loves West Virginia. Also some strength in financials ahead of JP Morgan tomorrow – at least that group has been strong for reasons other than unicorns and butterflies.
As long as you positioned yourself for that combo yesterday, today is splendid. Meanwhile a host of former leadership stocks are doing little to nothing, and/or down. Something seems amiss.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog