In an environment where commodities are getting crushed, Cramer on Tuesday said coal is king.
Coal is right for the long-term haul, the “Mad Money” host said. Demand is through the roof thanks to growth in emerging markets, like India and China, he said. Plus, there is demand for metallurgical coal, which is used to make steel. Steel, Cramer pointed out, is another hot commodity courtesy of the growth in emerging markets.
But could home gamers also benefit from a short-term move, Cramer asked. John Carter, a highly regarded technician on Wall Street, said the technicals indicate a coal breakout is on the horizon. He specifically likes the weekly chart for Market Vectors Coal exchange-traded fund.
If and when this coal breakout happens, Cramer believes the stock to own is Peabody Energy . BTU is the largest player in the coal business, he said, and has the most exposure to fast-growing Asian markets.
To further explain what may be happening in coal, Cramer went “Off the Charts.” Watch the video to see his full report.
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