Closed Coal

I closed out my position in Peabody Energy Corp (BTU) yesterday at $30.44 for a 31% gain in just over two weeks. My thought process was to sell on a nice move upwards, which I believe was in part to the ongoing stimulus plan discussions and President Obama's speech. I'm still keeping an eye out for the final stimulus plan, which is coming, but what will it look like in the end?

I want to know more about these 4 million jobs created/saved that President Obama addressed in his speech. This will help provide a blueprint for future investments.

Infrastructure Plays

President-elect Obama wants to begin the largest investment in U.S. infrastructure since the 1950's. This investment includes the creation, maintenance, and repair of roads and bridges. All this investment requires materials such as asphalt and cement, so I am going to do some more digging around for companies that would thrive in this realm such as Vulcan Materials (VMC) and Cemex (CX).

Short Trade Influences

The SDS has been treating me well and as long as the ambiguity remains within the market the better for this trade. Today in pre-market it is trading in the $106 range, which puts my gain at approximately 24% for this particular trade. After some research, I have tentatively decided to sell in the $120 range, which would translate into an approximately 40% gain. There are a few things which will directly influence my trade strategy and they are:

*Big 3 automakers status

*Ben Bernanke and Henry Paulson testimony

*Barack Obama nominations