Autos and Coal Are Star Performers

11/26/2010 12:01 am EST

Focus: OPTIONS

Thomas Aspray

, Professional Trader & Analyst

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Two of the best-performing industry groups over the past three months have been the Automobiles (up 37%) and Coal (up 39%). The Automobile Index had moved well above the April highs, but it is now correcting and should find good support in the 165 area. The 50- and 200-day moving averages (MAs) turned negative for two days in early September (see circle), but both are now rising sharply. The Coal group has just recently moved above the April highs and is starting to perform better that the Autos. The 50- and 200-day MAs were negative from June to early November. The 50-day is now rising sharply, consistent with a strong trend.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

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