And, please, please don't say "more sellers, then buyers". Explain to me, how in the face of $5 natural gas, there's absolutely no support for coal. We've gone from $19.50 to sub-$17 in 3 weeks, on no fundamental news. Who are the sellers? What do they know?
In my view, its all fear. Peabody announced a few weeks ago that, it was going to have a weak 4th quarter. Something about a mine start-up, patriot coal settlements and a labor agreement.
Arch, also just announced they are going to have a weak 4th quarter. To me is only common sense; If you have a large amount invested in Peabody pull out and then wait till after next Friday. Just to see which way the stock goes.
China is still just trying to electrify their country. They're still building power plants so citizens can turn on lights and plug stuff in. I wouldn't believe anything that the Chinese government says...yesterday they said their gold reserves had not changed over the last year, while everyone knows they've purchased the bulk of gold that was produced worldwide in 2013. They say they don't need iron ore, while they're buying iron ore at lower prices. They've learned to do this with all of their commodity purchases, after getting screwed by the West for decades.
stlmn77...So, the low natural gas pricing of a year ago ($2) was obviously bad for coal, shifting the benefit of coal fired plants to natural gas...yet now, the high natural gas prices are bad for coal due to the anticipation of future low natural gas prices? Because, I guess, the natural gas industry would rather pump out more gas at lower prices, rather than selling higher priced NG, and saving their reserves? I think my brain is going to explode!