Capitol Hill is moving faster than ever. We will get a Cap-and-Trade vote on Friday. The market has already cast its vote, making now a great time to make some smart investments.
The Obama administration must be getting some schooling from Dealin’ Dave’s Used Car Sales.

Can’t you hear Nancy Pelosi saying to some farm-belt democrat, “What’s it going to take to get you into this climate bill tonight?”

One of the easiest “outs” for a potential car buyer is to say, “I like it, but let me go home and talk to my wife.”

It is no different with shoddy legislation. “I like it,” say our fence-sitting lawmakers, “but let me go home and talk to my constituents.”

Knowing if a customer leaves the lot, he may never come back, House leaders are working overtime to ensure the latest nefarious piece of legislation to come off of Capitol Hill gets a vote before our elected officials head home for the Independence Day break.

If these guys go home, the deal is off the table, possibly for good. You can count on it.

That is why we will likely see a vote on Cap-and-Trade legislation on Friday. It is the oldest trick in the sales book; rush it through while the emotions are high and don’t give them time to think about it.

The tactic worked perfectly with the trillion-dollar stimulus plan. Remember how many legislators read the actual legislation? We all know how that deal is working out.

All we can do is hope our leaders learned from their mistakes.

The market has spoken

Studying Wall Street, the market appears to have already cast its vote. With most energy stocks well in positive territory so far today, investors are not worried about potential new emissions regulations.

The industry that best indicates the market’s sentiments is the coal industry. While Daryl Hannah is getting arrested outside a Massey Energy (NYSE:MEE) facility, the sector is moving ahead as if the threat of strong obstacles ahead is nowhere in sight.

Massey, Arch Coal (NYSE:ACI), Consol Energy (NYSE:CNX), and my favorite coal producer, James River (NASDAQ:JRCC) are all making strong gains today.

The action is the Street’s way of saying Washington won’t be driving House Bill 2454 off the lot anytime soon.

But the market is not always right.

If it is wrong, savvy traders will have a strong profit opportunity on their hands. If the coal industry suddenly forces great headwinds, today’s prices could look downright expensive.

It is a gutsy bet, but as the week progresses could be one worth taking.

Options players have the best shot at profits. Front-month put contracts will soar in value if the above-mentioned companies take a blow later in the week.

This legislation is moving far faster than most pundits would have imagined just last week. That means the market has had very little time to study the situation and digest the estimates. It also means there is plenty of room for increased volatility.

When the markets are unprepared, just about anything can happen.

That is exactly the way Nancy Pelosi wants it.

Source: Right Out of the Used-Car Sales Book