Get Ready for Coal's Big Comeback

The breakout that's taking everyone by surprise July 29, 2014     Get Ready for Coal's Big Comeback   The breakout that's taking everyone by surprise A powerful momentum play in the works... Plus: How to survive summer trading   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Over the past three years, few investments have performed worse than coal. The Market Vectors Coal ETF (NYSE:KOL) has lost about 60% of its value since midway through 2011. Individual coal stocks have fared worse. Some have already filed for bankruptcy... Investors hate coal stocks because they've brought them nothing but pain. Environmentalists hate coal because it pollutes. And politicians hate coal because they see an opportunity to jump on the bandwagon and gain some much-needed positive publicity. Early last month, the Environmental Protection Agency announced that power plants must reduce their emissions of carbon dioxide by 30% by 2030. The war on coal is here, and sentiment among the coal miners has finally hit rock bottom... "The first thing that stands out is the overwhelming anecdotal evidence of hatred towards the coal stocks," my friend J.C. Parets, founder of Eagle Bay Capital, wrote yesterday. "Who's pounding the table on coal?" The answer, of course, is no one. Investors have absolutely crushed coal. They want to buy solar or fuel cell stocks. They want to invest in the future--not some sooty black rock. That's fine. Heck, I like solar, too. But that doesn't mean I believe we're going to wake up tomorrow morning and stop burning cheap, plentiful coal. It's just not going to happen. I think coal is here to stay in one form or another for decades. The world needs cheap energy, and coal delivers. In fact, coal is trying to tell you something right now. All you have to do is look at its chart... "I don't think this trend can last forever," I told you in early June when KOL was still fighting to gain momentum. "The Market Vectors Coal ETF (NYSE:KOL) is once again attempting a comeback move. The ETF has traded higher every single day this week. If it can sneak back toward $19, you could see a breakout that takes everyone by surprise." This week, we're finally seeing that surprise breakout. KOL jumped over $19 Monday--and it hasn't looked back. If this breakout holds, coal could gain some serious momentum after slumping for years. Just look at that long-term chart. After a solid year of trying to find a bottom, KOL is finally catching a break. Comeback moves like this one can be incredibly profitable. By the time the average investor catches on, coal names could quickly double...         New Openings in Secret Project [Urgent Notice: This project expires at midnight July 29] There are limited openings for the newest release of this incredible wealth-building strategy. Once the spots for this "secret" project are filled, you may be out of luck. Click here to now to see if there are any spots left.           Rude Numbers Targets, Predictions and Wild Guesses   $2 million in fines was levied against Smith & Wesson to settle SEC bribery charges. Company officials allegedly made illegal payments to officials in Pakistan and Indonesia... 25 companies are scheduled to go public this week. If all of the stocks begin trading on schedule, this will be the busiest week for IPOs since August 2000. $1,306 is where you'll find gold futures this morning. The shiny yellow metal is up about $3 in early trading... $100 buys a barrel of crude this morning. Oil continues to sink this week after hitting a high of $105 earlier this month... 1,976 marks the spot for S&P futures just before the opening bell. Stocks are set for yet another green open today...     Rude Trends When to Buy... When to Sell   Stocks dropped hard Monday morning. Then they fought their way higher... just in time to slump into the close. We might not be having typical summer weather here on the East Coast--but we are experiencing those difficult summer trading days that manage to somehow frustrate the hell out of everyone. We're quickly approaching the end of July. So far, stocks have posted a few new highs, along with a couple of sharp drops that were quickly bought. But as of this morning, we're about right where we began just four weeks ago. Traders are hoping that August will bring about a decisive move higher or lower. However, as you know, the markets do what the markets do. That's why I spend every single day scouring the dark corners of the market for the hidden trends and trades that could help you profit--even if the major indexes remain stuck in their summer holding pattern... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   6 Simple Steps to Turn $500 into a Fortune in One Year Just one nine-digit code could speed up your retirement plans by 20 years! Underground Bank Could "Kill" Your Local ATM     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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