MARKET VECTORS COAL ETF NEARS 52 WEEK HIGH -- COAL LEADERS ARE PEABODY AND CONSOLIDATED ENERGY -- ARCH COAL BREAKS OUT OF BASING PATTERN -- DOLLAR DROP TO NEW LOW BOOSTS STOCKS AND COMMODITIES

MARKET VECTORS COAL ETF NEARS 52-WEEK HIGH... Here's an energy ETF that I haven't written about before. It's the Market Vectors Coal ETF (KOL) and it's based on a group of stocks tied to the price of coal. The ETF has been outperforming all year as reflected in its rising relative strength line. The KOL has already tripled in price since March. So this isn't a new trend. Its point & figure chart in Chart 2 shows an initial buy signal given back in April at 16 with four successive buy signals since then. In order to disrupt that uptrend, the KOL would have to close at 25 or lower to violate the last O column. A number of its component stocks have promising chart patterns.

Chart 1

Chart 2

COAL STOCKS ON THE MOVE ... The three coal stocks shown below are plotted in order of their relative performance for the year. Interestingly two of those stocks (BTU and CNX) are among today's top energy gainers. Chart 3 shows Peabody Energy rising 5% and nearing a 52-week high. Two relative strength ratios are shown on each chart. The top one plots the stock versus the energy SPDR (XLE). The bottom one plots it relative to the S&P 500. Peabody is rising on both fronts. In other words, it's becoming an energy and market leader. Chart 3 shows Consolidated Energy (CNX) hitting a new 52-week high after recently clearing its June high. Its relative strength line has broken out versus the XLE (top line) and is rising sharply versus the S&P 500 (bottom line). The most interesting chart is shown by Arch Coal (ACI) . Chart 4 (plotted on a log scale) shows ACI breaking out of a bullish "head and shoulders" bottom with a "neckline" near 20. Both of its relative strength ratios have broken out as well. Although not shown here, Joy Global (JOYG) is also trading at a new 52-week high. JOYG produces and maintains mining equipment used in the extraction of coal. [Thank you to my friend Ed Dunne for his help with today's articles on platinum and coal].

Chart 3

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Chart 5

FALLING DOLLAR BOOSTS STOCKS AND COMMODITIES ... Chart 6 shows the Euro rising to the highest level in the year (as the dollar fell to a one-year low). The dollar drop gave a boost to global stocks and commodities. Initial support for the Euro now resides at yesterday's intra-day low just above 146. Chart 7 shows the streetTracks Gold ETF (GLD) jumping the equivalent of $11 dollars today. Initial chart support for the GLD is now at 97.73. Chart 8 show the S&P 500 rising today as well. Initial chart support for the SPX is at yesterday's intra-day low at 1057. [Editor's note: Please read my earlier message on rising platinum and steel stocks].

Chart 6

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Chart 8