Signs of Life from a Deserted Area of Wall Street

The price action in coal miners ACI and BTU has been something to behold in recent sessions. Amid bankruptcies in the coal sector, Arch and Peabody have displayed clear signs of potentially emerging as the survivors with increased market share. 

The rally in ACI, in particular, has the hallmarks of being a "lockout rally," a concept we have been discussing inside Market Chess Subscription Services. 

Arch has rallied many times over in just a few sessions, albeit from downright depressed levels. On the updated daily chart, below, note how price became and remained overbought, taking it up to the declining 200-day moving average. At some point, the stock will cool off and consolidations should almost assuredly be stalked, given this unique strength off a multi-year downtrend. 

Elsewhere, small caps are showing some relative strength this morning and, for the most part, staving off bears at the moment in a choppy tape.