The short Market Vectors Coal (KOL) trade is not working and could easily run against us this coming week with additional coal companies reporting earnings.

Arch Coal Earnings

            Arch Coal (ACI) reported a very strong quarter on the back of rising coal prices over the course of the quarter and gave a forward looking estimate that was beyond what analysts have been expecting. The stock moved higher 9.32% on Friday causing the ETF KOL to also move strongly to the upside. Arch Coal makes up 5% of the KOL ETF.

Additional Coal Earnings Coming

            This coming week will see additional coal companies reporting earnings which could very well cause the KOL ETF to continue to move to the upside. Patriot Coal (PCX) will announce their earnings on Tuesday along with Alpha Natural Resources (ANR) and Walter Industries (WLT). And on Thursday CONSOL Energy (CNX) will announce their earnings along with Massey Energy (MEE). CONSOL Energy makes up 8% of the KOL ETF while Massey Energy is 5.6% of the fund’s holdings.