Nat Gas

With the bounce in the energy sector, I believe that it is important to keep an eye on there.
Although oil seems to be weak yesterday, Nat-gas continues to be strong.
This has attracted good money into Nat Gas stocks.

I think that this sector is safer than oil producers, simply because the Nat-gas market is local while oil in international.

[ATTACH=CONFIG]26796[/ATTACH]

SWN is a very good stock to buy, but if you do not know where to put money, then the Nat Gas ETF "FCG" looks interesting. We can see below that we are in a "bounce process."

[ATTACH=CONFIG]26792[/ATTACH]

However daily moves have been wide and we should be ready to see a big daily negative move such as we saw in the past week.

[ATTACH=CONFIG]26791[/ATTACH]

That being said, FCG is attracting money.

[ATTACH=CONFIG]26795[/ATTACH]

A breakout above $15.7 could be very interesting, especially if there is volume.
In fact I would be buying if I get an early volume signal that the EOD will be higher than 1M shares.
Below is the Vol pattern of last Friday.

[ATTACH=CONFIG]26797[/ATTACH]

A pull-back down to the $14.7 is not be attractive.

[ATTACH=CONFIG]26793[/ATTACH]

[ATTACH=CONFIG]26794[/ATTACH]

You can also buy individual stocks such as CRK, which could display more shorts covering action.