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.

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