maxopedia

Having been an active participant of the July coal sell-off via NCOC, (a very novice mistake and a position which I am still holding...) the movements of the coal sector have been of great interest to me.

KOL is an ETF tracking the Stowe Coal Index. As far as I can tell, NCOC is currently not part of this index. However, NCOC and KOL have an interesting relationship. NCOC got hit real hard and fast on the July sell-off, much harder and faster than KOL. However, NCOC is now out-performing KOL. Don't listen to me, check out these charts of the last 60 days (hourly).

Perhaps we could say NCOC was far too relatively oversold. Perhaps we can talk about a potential buyout on NCOC and the various institutions that have initiated positions. Perhaps I could mention the gorillas (big orders sitting on the bid) that started accumulating NCOC (presumably the institutions). Who knows?

Whichever way NCOC and KOL decide to go, this market has some interesting action that could potentially be very profitable.