Put Some KOL in Your Stocking

By Sam Collins,  December 21, 2010, 07:01:19 PM EDT

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



Latest News Video

Private Island on the Thames: $11.7 Million
Private Island on the Thames: $11.7...
Take Control Of Your Wealth
Take Control Of Your Wealth         
How to Avoid Getting Caught Pre-Defection
How to Avoid Getting Caught Pre-Def...
WSJ House of the Week: And the Winner Is…
WSJ House of the Week: And the Winn...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.




Most Active by Volume:

Company Last Sale Change Net / %
PFE $ 29.40 0.24  0.82%
NOK $ 3.86 0.17  4.61%
S $ 7.32 0.10  1.39%
BAC $ 13.27 0.06  0.45%
GE $ 24.33 0.56  2.36%
MU $ 13.76 0.52  3.93%
SIRI $ 3.40 0.06  1.80%
MNKD $ 6.605 0.94  12.40%