Natural gas stocks. Is it finally happening?

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As we remarked earlier the natural gas and energy stocks are showing signs of breakout.  Valid bottoms appear to have been formed in these selections and their penetrations of the horizontal lines are signals which make them worth a bet — as always, a scaled in bet.

Those with apparent breakouts include CHK, EROC, DVN.

REP may already have gone too far  but joining strong trends is not a bad thing to do, if scaled into.  PBR shouldn’t be joined until the horizontal line is taken out.  PLLL has a most interesting pattern.  You should look at it to see if the post gap behavior is positive. One would want to see a white candle  on the gap, but that may be too picky.

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TK  is another of this group,but it’s chart is uninspiring.

In general we prefer the direct index or commodity, rather than the stocks which produce it.  Which makes us prefer, for personal accounts, UNG, but often stocks will outperform.  But with the direct ETF you don’t need to worry about management and earnings lies and all the other pleasures of owning stocks.

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