your event does NOT explain the drop in steel... the market forces are recognizing that demand can not continue with oil/gas consuming available money... everything contracts... eventually oil/gas will too, but it's probably the last shoe to drop... once that happens, the rest of the market will recover.... shouldn't be long now... good luck...
Dave
of CT
@
Jul 03, 2008 21:56:40 PM
Um.. no.
The reason coal is pulling back is because of a major pollution case against a coal producer. A completely unexpected drop of 10% in a day has nothing to do with the rest of the commodity market. DBA (corn, wheat, soy and sugar) futures ETF went up yesterday. This drop in coal was caused by a specific EVENT - not an indicator of the overall market.
"One of the five largest coal producers in the United States may take a big hit if it has to pay damages in a pollution case, and it's got the coal exchange traded fund (ETF) a little nervous.
Massey Energy (MEE) is accused of contaminating ground water with waste from a mine, report Margaret Cronin Fisk and Christopher Martin for Bloomberg. Insurers are refusing to cover the damages, and if the company loses its case, it will have to pay $125 million. That's more than half of its estimated 2008 net income.
The news has Market Vectors Coal (KOL) trading sharply lower today, at times down by more than 7%. The fund has been one of the year's strongest performers since its launch on Jan. 15. Since then, it's up 61.1%, and Massey Energy is 5.6% of the fund's holdings."
Link is here: http://www.etftrends.com/2008/07/kol-keeps-up-he.html
Jennifer McCollum
of AL
@
Jul 03, 2008 13:46:10 PM
Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.
Dave of CT @ Jul 03, 2008 21:56:40 PM
Jennifer McCollum of AL @ Jul 03, 2008 13:46:10 PM
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