Winter Is Coming. But Our Energy Crisis Plays Are HOT

by | Oct 25, 2021 | Market Outlook

Ohhhhhh boy…

Weather forecasts released Monday by the National Oceanic and Atmospheric Administration showed a 50% to 60% chance of colder temperatures in the eastern U.S. over the next couple of weeks.

Source: NOAA

As a result of that possible cold snap, natural gas prices are absolutely on fire, topping $6/MMBtu again in trading Monday.

Source: NOAA

Despite that blowout move, our Global Energy Crisis plays on coal producers are showing mixed results, with CONSOL Energy Inc. (NYSE: CEIX) up just 1.3% and Peabody Energy Corp. (NYSE: BTU) down 1.16%.

By now, you should know what to do when that happens… 

Sell (a little) on green and buy (a little) on red!

Coal Producer Earnings This Week

This was a great opportunity to implement that strategy. If you didn’t, it’s OK… You have to consistently pay attention to prices and practice executing on that process a lot.

But expect this sleepy, under-the-radar sector to come into focus big time over the next two weeks as several key coal producers report earnings.

One producer in particular reports earnings before the open Tuesday… And if they say what I think they’re going to say, we’re going to be in for a huge week.

It’s not 100% guaranteed, though. End users of both thermal coal (which goes to power plants) and metallurgical coal (which goes to steel plants) have been reluctant to buy at these record high prices.

But stockpiles are low, and tons of coal are hard to get without contracts. And the season to negotiate those contracts starts… right now.

So if we don’t hear solid news on one of these earnings calls, rest assured that as soon as one plant bites the bullet, you will see news releases galore.

And although the mainstream financial media companies probably won’t cover these coal producer earnings or any big moves — they don’t even have access to prices — I certainly will.

So you’ll know too…

All the best,

Matt Warder

Fortune Research

WRITTEN BY<br>Matt Warder

WRITTEN BY
Matt Warder

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