A Coke Classic

Based in Illinois, SunCoke Energy, Inc. seems like the sort of play which, on the surface, could benefit from a Trump Administration. 

SunCoke, as the name implies, focuses on coke-making and production of coking coal, also known as metallurgical coal, which is used to create coke, one of the key irreplaceable inputs for the production of steel. 

Although coke-making may conjure up images of Tony Montana rising through the ranks of a Miami drug empire, or Warren Buffett buying, holding, and living forever as a KO shareholder, this sort of "coke" could prove to be equally as alluring. 

On the SXC daily chart, below, the continued strength we have flagged for Members is on full display, with price basing tightly above all moving averages. Also note the heavy buy volume in December, typically a light volume month for equities in general. 

SXC may or not prove to be a beneficiary of the current White House policies. However, we know that steels have been enjoying a strong rally in recent months as other materials and commodity plays join the party.

With earnings coming up on January 25th, I am eyeing Suncoke for a run into the report.