NEW YORK (www.TheGoldAndOilGuy.com) -- What if you just got a lump of dirty old coal in your stocking for the holiday, how would you feel? The only individuals who would appreciate a dirty gift like that would be those forward-looking investors who see major opportunities before they become the next big movers and headline news.Knowing how to spot Stage 1 patterns is one of the most important bits of information you need to know as an investor. This one pattern is how I found Research in Motion ( RIMM), which is now up 100% in the past 30 days, Alpha Natural Resources ( ANR), up 30% in two weeks, First Solar ( FSLR) up 20% in 20 days, the list goes on. My main focus is on ETFs, because of the lower risk they provide, while being very powerful when applied to individual stocks. Coal and coal stocks have been out of favor for almost two years now. But these unwanted and hated shares may soon be owned by the masses, or at least by traders and investors. A few weeks ago, I talked about the four stages all investments go through and which patters you must be able to spot in order to make huge money investing while having very limited downside risk. You can read about that
This Coal ETF ( KOL) is a basket of coal companies and is starting to show signs of a new bull market. A breakout and close above $26.00 should trigger strong buying with the potential of a 21% gain before it hits my first price target. This could go way past that, but one target at a time, folks. Naturally, I would like to see a bull flag or pause in KOL over the next couple of weeks, then look to get long using the pivot low of that pause/bull flag as my protective stop. I'm not jumping in here as the broad market looks ready to correct and ¾ stocks follow the big board, which will pull KOL down.
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