Apple Resumes Its Correction--Target 565

After its previous breakdown, Apple bounced strongly, giving a false low pole reversal signal.  Following the market close on Thursday, Apple released their earnings and guidance, resulting in Friday's double-bottom breakdown.  The P&F Chart bearish target is 565.

Touting Coal (3)

Taking a position in coal while the fog is thick regarding the election results is likely to reward better than waiting until there is certainty. Use risk management accordingly.

James River Coal Company (JRCC) is based in Richmond, VA. Recently, they have been losing money, but their cash position is pretty strong (Current Ratio 2.33, Quick Ratio 1.92).  The shares are priced at 0.6 times the Book Value.

Touting Coal (2)

Peabody Energy (BTU) is the world's largest private-sector coal company.  Like Arch Coal, their corporate headquarters are in St. Louis, MO.

http://www.peabodyenergy.com/content/113/Peabody-at-a-Glance

Touting Coal

A Romney victory could see a new energy policy in Washington, one intended to produce 'energy independence.'  This may put an end to the strangulation of American electricity production using coal.  Although the coal picture is complicated, here are some coal producers that have been showing life.

Arch Coal represents roughly 15% of America's coal supply. It is one of the top 5 coal producers in the world.  The Hunt family of Dallas figures prominently in the history of Arch Coal, and Douglas H. Hunt serves on the Board of Directors.  According to SEC filings, he has been accumulating options for the past several years, currently owning 76,469 shares.

http://www.archcoal.com/aboutus/history.aspx

http://www.secform4.com/insider-trading/1046083.htm

Apple's Low Pole Reversal--Correction Ending?

The low pole reversal is seen when a chart falls below a previous low by at least 3 boxes but then reverses to rise by at least 50 percent of the fall. The reversal implies that the supply that was making the prices fall has been absorbed and demand is taking over. The pattern is an alert that higher prices could be seen in the future. The ideal buy point would be on another reversal back down to be closer to the stop loss point. This would also set up a double top breakout if the prices reverse up and break over the current column's high.

Apple Correction Continues

Bearish Price Objective 565, according to P&F Chart

From Ed Yardeni’s Blog—Insight into China/Japan auto trade

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Fed Beige Book Notes Improved Housing Numbers

Here is the latest data from around the country.

Beige Book (for your reading pleasure)

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