Don't Be a Stock Snob

Nothing unnecessarily eliminates opportunities in many forms of speculation than having a condescending mindset. 

As an example, I have seen plenty of instances in poker where players would always sit in higher limit games even when they were not particularly good games (gauging from the lineup of players), whereas if they had been willing to bump down a limit or two, the games were incredibly juicy and could actually be even more potentially profitable than the larger games due to the sheer size of the pots. 

In trading, it is one thing to acknowledge that certain sectors like smaller biotechs, smaller China internet plays, and smaller commodity stocks can often carry more risk than usual. But it is quite another thing to completely thumb your nose at a group of stocks merely because they seen as the cool kids. 

On that note, coal stocks come to mind. SXC is a name we traded previously with Members and have discussed on this website, due its coking coal angle related to steels, too. 

But CEIX (a spin-off from CNX) and BTU are two other strong domestic coal charts, to boot. We know that President Trump is almost always going to be in favor of coal, and the CEIX daily chart, below, reflects as much with a high and tight bull flag trying to break higher in a mixed tape this morning. 

While solars, uranium, and good ol' energy stocks in general are still on my radar, coal names could prove to be as profitable as any of them into summer. The price action and volume patterns have been bullish, and the sector remains well off the grid for traders who seem hell-bent on only traded higher limit, prominent stocks in tech.