Ride the Coal Train With KOL

By Sam Collins,  April 04, 2011, 09:00:20 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 its total assets in equity securities in the coal industry, bottomed several years ago at under $10.

The Trade of the Day last recommended KOL on Dec. 22, at around $44, after the ETF traded up to new highs on a breakaway gap with heavy volume.

Now, following a consolidation at just under its 20- and 50-day moving averages below $48, KOL broke out again, this time from $50 with a new target of $56.

Hold KOL if you own it, and buy it as a long-term investment if you don't. Short-term traders should consider buying the KOL May 52 Calls at $1.75 with a target of $4.

Trade of the Day - Market Vectors Coal ETF (NYSE: 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



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