Mitt says, “By the way, I like coal,” and generates “Romney Rally” in coal and coal ETFs
So said Presidential Candidate Mitt Romney in his debate last month with President Obama.
The full quote went like this: “By the way, I like coal. I’m going to make sure we can continue to burn clean coal.” Addressing the President, Mr. Romney said, “People in the coal industry feel like it’s getting crushed by your policies.”
The quote triggered what has since been called the “Romney Rally” in coal and now with the election upon us, coal continues its bullish ways.
Chart courtesy of StockCharts.com
In this chart of Market Vectors Coal ETF (NYSEARCA:KOL) we can see how coal took off in early October, up some 11% since its late September low and up approximately 9% over the last 30 days.
Market Vectors Coal ETF tracks the market Vectors Global Coal Index. Major holdings include China Shenhua Energy Company, Consol Energy, Peabody Energy and China Coal Energy Company.
As the election approaches, remains in a bullish profile as perhaps investors expect Governor Romney to win on Tuesday and so underpin the coal market when he takes the oath of office in January. SPY Votes For Romney (NYSEARCA:SPY)
However, if you’re not so sure that Governor Romney will win on Tuesday or want to hedge your bet regarding the election, a back up “ETF Tip” would be SPDR S&P 500 Home Builders ETF (NYSEARCA:XHB)