The Evolution of Natural Gas

Natty seems to be a beneficiary of the recent disaster in the Gulf of Mexico.  I’ve highlighted some previous resistance that has clearly been broken.

Here is a differential chart of USO / UNG showing USO (Fund tracking crude) relatively weak compared to UNG (Fund tracking Natural Gas).

Here is a screener of Independent Oil & Gas companies.

Names that have prominent Nat Gas revenue are: PVA, ROSE, PQ, GDP, KWK, FST, COG, HK, NFX, UPL, RRC, STR.

I like HK vs SWN, among others…

A word of caution: The nat gas trade may be quite rocky/violent.  There are lots of traders who have been in this trade for many weeks and months and have large open capital losses.  They may have some size to unload as they move to breakeven… just a thought.


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