[Tryst]

Coal has been one of the strongest sectors over the last five days, and there are a number of stocks already in Stage 2 advances which you should look at if you are interested in the sector, as the method is about buying the strongest stocks. But I thought I'd highlight that a few of laggard stocks are now in Stage 1 again, after failed Stage 1 bases in late 2012 - ANR, ACI and BTU.



Also, the sector chart Dow Jones US Coal Index ($DJUSCL) is also in Stage 1 currently, which can be traded by the KOL etf, although you'll note from the attached performance chart that it's tracking is not very accurate and it has underperformed the coal index by over 10% in the last 200 days.



So the Coal sector - which is the only negative Energy sub sector over the last year - looks to be making another attempt at basing, and so is an area to watch for a potential move into Stage 2, as the relative performance on the sector chart is much closer to it's zero line this time, and a Stage 2A breakout above the November swing high would also nudge it just above the weekly Ichimoku cloud resistance, which is much thinner here.

Great post, isatrader.

I think this is the stage that I am most interested in, the ones that are basing, making the stage 1's. Then we can just just watch and draw the pivotal points and wait for them to break and move to a stage 2/A.

Do you have any filters/rules for identifying basing stage 1 sectors/equites?