Another good leading indicator is Coal. In January, President Obama is going to unveil a stimulus program. I have already written a previous blog on this subject where I voiced my opinion that he best not engage in a program of building schools and fixing potholes in roads. What is needed is projects to grapple with the gaping trade deficit.

One way to meet this trade deficit head on is to take steps to make America more energy self sufficient. With America sitting on a massive supply of Coal, one brilliant strategy for Mr. Obama would be to spend money building new coal fired generating plants and money on plants that can use existing technology ( originally developed in the 1920's !!) to convert coal into synthetic fuel.

One stock to keep a close eye on is KOL which is the Van Eck Global Market Vectors Coal ETF.

Right now RSI and DMI technical indicators are NOT giving a buy signal. I suspect it will take a move over the 50 day moving average to deliver this signal.