ABOUT THIS BLOG

Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.

Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).

Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.

Thursday, June 26, 2008

JRCC: James River Coal Company (overview)

James River Coal Company (JRCC), another of the coal stocks in a hot bull market, has been a stock to watch since late March, 2008. Since then, it has been steadily increasing in health in comparison to the other stocks in the market, and as of early June, 2008, the big money crowd (institutional investors) has joined into the game and has started buying shares.

Technically, the stock has some work to do before it becomes a sound investment. Currently, the 50-day moving average is at $37.19 (far below its current level), which means that the stock would need to at least pull back to that level or base [move sideways] in a tight trading range until the moving average catches up with the stock BEFORE one should even consider investing in this stock.

At the same time, it appears that there is massive churning of the stock, and that the stock has been in a basing pattern since mid-June. It would be a bullish thing for the stock to break above $62.95 on high volume.
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