Picking the Right Coal Short
China accounts for nearly half of the world's coal usage, consuming 3.7 billion tons in 2011 according to the China Electricity Council. The news that China has lowered its targeted economic growth rate to 7.5% from 8% is a negative for resource plays in general, but it is particularly unwelcome news for the already-hammered coal stocks.
Often when a stock hits multiyear lows I can hear a little voice say "it can't go any lower." Of course, this is a fallacy. Beaten-down stocks can always go lower and they often do. That little voice is one of the many things that make trading difficult and I can still hear its echoes after all these years....486 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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