Jeff Williams of the Penny Pro says that Labor Day marks the start of a time when he looks for seasonal stocks, issues coming out of the summer doldrums,and that he is finding some promising targets in the coal industry, specifically Cloud Peak Energy Inc. (CLD). Williams said the company has historically had rallies in late September leading into the winter, which is why he is watching it now; with the stock hovering just below its 50-day moving average, Williams wants to see the stock hold over $3 and get over the 50-moving average to confirm that it’s ripe for a swing trade that could last a few weeks. He expects that it can get close to or surpass the 200-day moving average, which would put the stock in the $4 range going into the heating season.
Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $10 a share. At the time this interview was taped, he had no shares, options or open orders in CKD or any coal stocks. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.