For months the pros have been saying if there's one energy trade to avoid it's coal. That is, until now.
Esteemed commodity pro Dennis Gartman says coal has gotten so bad, it's actually good.
"Nobody likes it even slightly -- it's been under pressure from all fronts," says Gartman. (Read More Below Video.)
Has Coal Bottomed?Dennis Gartman, The Gartman Letter, says he finds the recent action in the shares of coal companies enticing. Meanwhile nat gas climbs above $3.
But, in addition to absolutely terrible sentiment, Gartman also thinks fundamentals are starting to favor coal.
"People have been saying that with nat gas so low, power generators would switch from coal to nat gas. But now nat gas is starting to climb a little."
Gartman thinks that will dissuade any more power generators from making the switch - at least right now.
"That's a simple thing," but sometimes a simple thing is enough for a trade.
At current levels I'd look at the KOL (KOL), says Gartman.
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