The energy and commodities sectors now appears to be heating up; and one booming market is coal," says Mark Skousen, who adds, "In light of this, our latest featured recommendation is Peabody Energy (BTU)."

The editor of The Hedge Fund Trader Alert explains, "Coal demand is rising both domestically and globally, especially among the BRIC emerging markets.

With gold and silver prices testing new highs, we turn to several leading resource experts -- Mary Anne and Pamela Aden, Mark Skousen and Larry Edelson -- for their favorite plays in the sector.

In The Aden Forecast, the Aden sisters explain, "Gold and silver recently moved well into record high territory, and it looks like they are poised to head even higher.

"Most impressive, gold's leading indicator still has room to rise further before it reaches the high area. This tells us that gold's current C rise is very strong and it's now likely headed to our next target level near $1200. Meanwhile, December gold will remain super strong above $1,020.

"The smart move in today's market is to stick with companies that are growing right through the recession, such as WMS Industries (NYSE: WMS)," says Mark Skousen.

In his trading oriented service, The Hedge Fund Trader Alert, he explains, "Based in Waukegan, Ill., WMS designs, manufactures, leases and sells gaming machines and video lottery terminals to its customers, the casino operators.

"Earnings at WMS have climbed by at least 24% the past 11 quarters. And they're still accelerating. Most recent quarterly results were up 36% on rising revenue. What's going on here? WMS is a great innovator. And it knows its business.

"I still think this rally has further to run, particularly for financial stocks that will thrive in a lower interest-rate environment," says Mark Skousen in The Hedge Fund Trader Alert. "A prime example is Wachovia (NYSE: WB)."

"Based in Charlotte, N.C., Wachovia is one of the nation's leading money center banks. It offers personal banking, insurance, retail brokerage services, and asset management. The bank has more than 13 million customers and assets that top $754 billion.

"Like most banks, Wachovia's profit outlook has been damaged by the credit crunch. Its mortgage business is in the tank. And the true value of the subprime mortgages on its books has taken a haircut.

"As a result, Wachovia's shares have lost a third of their value since mid-April. This is true even though operating margins are 34% and the dividend yield is now a mouthwatering 6.7%.

"There will be more fallout in the banking sector, but Wachovia already is a terrific value. At current levels, it sells for book value and just nine times prospective earnings.

"The company's top executives also find this stock attractive. Insiders have purchased nearly a million shares during the last six months. They have sold precisely none. Clearly, they believe the stock is oversold at current levels.

"If the stock does nothing more than return to its April high, we'll see a 50% gain from here -- plus dividends. Not a bad return for such a conservative choice."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.