In a new interview with The Street, Jim Cramer is making energy-related trade recommendations based on his forecast for tonight’s presidential debate.Cramer advises that “you should sell the coal stocks,” which have rallied since Romney’s strong showing in the first debate. This implies he expects a better performance from President Obama, who Cramer says has “a good touch” in town hall formats.
Specifically, Cramer claims coal giant Peabody’s stock price has tracked Romney’s boost in the polls, which can be verified through the chart below:
Photo: RCP, Yahoo Finance
Cramer also expects natural gas prices, which have been improving in light of reduced drilling, to fall due to the milder-than-anticipated autumn. Regardless, he still likes natural gas stocks.
The Street references Peabody Energy Corporation (BTU), Massey Energy Company (MEE), and Arch Coal Inc (ACI) as sells in light of Cramer’s recommendation.
See the full interview below: