No way you want to be short JRCC over this weekend
With massive amounts of liquidity coming in from central banks around the world nominal commodity asset values are set to run again, even in the face of global weakness as the inflationary aspect overtakes the demand aspect. The stocks of commodity based companies will follow the commodities as night follows day and coal and nat gas are coiled springs and will react appropriately. The shorts have had their day in coal and what a day it has been...lots of money made. Now it is the bulls' turn. Longs will now enjoy the 3x beta of JRCC that has been killing them for months. We are at the inflection point...hold and buy more...don't sell into short covering...this is the ride you've been waiting for.
Uhhh....I don't think so. Looks like the market agreed with me. Crazy to be short over the weekend with this...especially any new shorts. Old shorts who shorted much higher will just lose some of their profits....that's no fun either. Anyway, more QE from around the world is going to inflate assets, commodities, and their underlying equities. Natty and coal will move upward even more as they will be reacting to a turn from a deeply carved bottom. This is text book and it's exciting to be long for big profits here.
Have a good weekend folks, we'll be back at it on Monday.