NEW BULLISH Plays

Coal ETF - KOL - close: 26.33 change: +0.06

Stop Loss: 24.40
Target(s): 29.85
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 07, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 190 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
The KOL tries to mimic the performance of the MarketVectors Global Coal index. The coal industry has suffered a hard couple of years but it looks like coal stocks have found a bottom. The KOL has spent several months building a bottom in the $22-26 range. In the last few days KOL has broken above potential technical resistance at its simple 200-dma. Now the KOL is hitting new relative highs.

The KOL can be a volatile ETF so we want to keep our position size small to limit our risk. I am suggesting new positions at the open tomorrow morning. Our multi-week target is $29.85. More aggressive traders may want to aim higher. FYI: The Point & Figure chart for KOL is bullish with a $35.00 target.

Suggested Position: buy the KOL (etf) @ (the open)

- (or for more adventurous traders, try this option) -

buy the APR $27 call (KOL1320D27) current ask $1.15

Annotated chart: