Even with this downgrade near this multi-year low there is no volume.
There just does not seem to be any buyers for this stock. WLT has a bunch of volume and CLF has average volume. It also seems like there are not a lot of sellers. This is where you really feel for the longs. Brokerages have been touting at different times to buy certain coal stocks only to be selling clients or shorting themselves. You have had 2 years of inverse trending with coal compared to the market. Many of the earlier investors have already sold and taken their loses. There are probably a lot of investors that bought in the 21 to 24 range that are now the holders. Granted there will be some holding from the 19 to 21 area. These folks are hoping it will get back to 20 but they are not doubling down. Fundamentally there is no reason to buy these coal stocks. The only way that one can see these stocks moving up is that HFT decide to make some money on the long side. From that reasoning do the HFT short first because there does not seem to be any support. Or are they short and covering slowly to go long. Obviously i have no idea so I will watch and wait before I do anything. We retail folks are the followers not the leaders in the market. GLTA