Where Coal Stocks Will Go Post-Election: Pros
The coal sector, which rallied following support from the presidential debates, could be running out of steam, the CNBC "Fast Money" pros said Tuesday.
OptionMonster.com's Jon Najarian said that discovery of natural gas in the Bakken shale and Marcellus shale regions has put pressure on coal and other fuels and would continue to do so regardless of who wins the presidential election.
"It's pretty clear people were betting that as Mitt Romney pounded the table for coal there that this would come into focus," he said.
(Read More: Why Are Stocks Up 1 Percent on Election Day?)
Trader Josh Brown said he believed the stocks benefitted from Romney's pro-coal stance and President Barack Obama's support.
"I think they got a little what we would call multiple expansion as a result," he said, adding a caveat.
"I have to tell you I think the recent rally is in a bear market," Brown added. "I think the longer term prospects of utilities switching over to natural gas probably remains in force, and Dr. J. rightfully mentions at the top that really coal is a derivative of what you think nat gas price will do.
"They probably stay cheap enough to be the better alternative."
Trader disclosure: On Nov. 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long QCOM; Stephen Weiss is long BAC; Stephen Weiss is long T; Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is long TGT; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Joshua Brown is long RAX; Joshua Brown is long CVX; Jon Najarian is long call spreads in ANF; Jon Najarian is long call spreads in DLTR; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in HMSY; Jon Najarian is long call spreads in TC; Jon Najarian is long call spreads in GLD; Jon Najarian is long call spreads in VLO; Jon Najarian is long STSI; Jon Najarian is long GLUU; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is short puts in GLD; Jon Najarian is short puts in AGQ.
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