27Oct11:00 amEST

Don't Trespass on the Wrong Holler in Coal Country

Despite missing earnings estimates, coal play Arch Resources is spiking higher this morning as the firm declared a quarterly cash dividend of $206.4 million, or $10.75 per share. 

ARCH, below on the updated monthly chart bull-flagging impressively, is the first of a flurry of coal stocks set to report earnings in the next week or two, namely ARLP BTU HCC SXC, among others. 

However, as you can see, the bull flag consolidation since the spring months may have lulled many to sleep (or frustrated longs to no end). But that is basically the purpose of such a pause anyway--To shake out excess, trap in bears, and gear up for a new leg higher. 

Alongside uranium, I suspect the global supply squeeze in oil could see coal come back into focus as a much-needed energy sources, not just this winter but indeed in the coming winters. Also note that energy as a group is outperforming this morning so far in the face of the META earnings calamity.

So while you do not want to venture onto the wrong holler in coal country, it is certainly worth a visit to the mines these days.  

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