Put Some KOL in Your Stocking

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Market Vectors Coal ETF (NYSE: KOL ) - This exchange-traded fund (ETF) seeks to replicate the price and yield performance of the Stowe Coal Index. The fund, which normally invests at least 80% of total assets in equity securities in the coal industry, bottomed several years ago at under $10.

I first recommended KOL as the Trade of the Day about this time last year, when it was trading at $36.40, saying, "KOL appears to be under heavy accumulation and will likely make another new high soon above $40. For long-term buyers, KOL represents a solid investment in the returns of the coal industry."

The fundamentals of this play are still solid, and yesterday KOL broke to new highs on a breakaway gap with heavy volume.


Traders may go after KOL now with a target of $50, and longer-term investors should take a half position now and add to it if profit-taking drives the ETF back to $44.

Trade of the Day - KOL Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ETF , KOL

Sam Collins

Sam Collins

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