Two of the best performing stocks this year, CEY and AUO are coal mining stocks. In fact all coal stocks have had a good run the past 90 days. Now I just happen to read an interesting announcement in Friday's (30th march) AFR; the Japanese have agreed to a coal price hike, a 30% increase in fact. That is a large increase, the best in years. Classic Dow theory. The insiders had an idea of what was coming. Perhaps it is better to say, the market players were punting an expected increase in the coal price as negotiations between Australia and Japan were taking place. I say again, if you get your chart reading ability right, you can, in a unique sort of way, forecast the future. The announcement did not catch the market by surprise.

The uptrend on the coal stocks is telling you in advance, good news is at hand.

So, a few coal stocks will increase earnings (assuming good management) over the next several years. Good chart reading ability can help time the purchase, and one would certainly not buy on the news announcement. A retracement is likely over the next week or two.