Coal's Bad Signal to Stocks

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monavie acai berry juice amazon of 6:42PM June 21, 2010

your event does NOT explain the drop in steel... the market forces are recognizing that demand can not continue with oil/gas consuming available money... everything contracts... eventually oil/gas will too, but it's probably the last shoe to drop... once that happens, the rest of the market will recover.... shouldn't be long now... good luck...

Dave of CT 9:56PM July 03, 2008

The reason coal is pulling back is because of a major pollution case against a coal producer. A completely unexpected drop of 10% in a day has nothing to do with the rest of the commodity market. DBA (corn, wheat, soy and sugar) futures ETF went up yesterday. This drop in coal was caused by a specific EVENT - not an indicator of the overall market.
"One of the five largest coal producers in the United States may take a big hit if it has to pay damages in a pollution case, and it's got the coal exchange traded fund (ETF) a little nervous.
Massey Energy (MEE) is accused of contaminating ground water with waste from a mine, report Margaret Cronin Fisk and Christopher Martin for Bloomberg. Insurers are refusing to cover the damages, and if the company loses its case, it will have to pay $125 million. That's more than half of its estimated 2008 net income.
The news has Market Vectors Coal (KOL) trading sharply lower today, at times down by more than 7%. The fund has been one of the year's strongest performers since its launch on Jan. 15. Since then, it's up 61.1%, and Massey Energy is 5.6% of the fund's holdings."
Link is here: http://www.etftrends.com/2008/07/kol-keeps-up-he.html

Jennifer McCollum of AL 1:46PM July 03, 2008