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Two Ways To Play: Is Obama Good For Gas?

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Strengthen your portfolio in good times and bad.

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Obama: Good For Gas?

According to Bloomberg, Oklahoma oilman Aubrey McClendon, CEO of Chesapeake Energy (CHK), believes his company and other natural gas producers will thrive because of Barack Obama's historic victory. Obama and a Democrat-led Congress favor windfall-profits tax on petroleum producers and will likely push for use of compressed natural gas in automobiles.

McClendon, citing a current bill introduced by Democrats that calls for incentives to install CNG pumps at stations and induce American to buy CNG-powered cars, believes a Democratic administration is more likely to pursue the use of CNG as fuel.

See Toddo's Random Thoughts: Trading the Commodity Rip.

From the Bull Pen: Bulls need to be patient with Chesapeake. One can set an initial position here, but keep in mind that the stock could fall back to near the $20 level.

From the Bear Cave: Coal stocks could see a more challenging environment. Bears might see an opportunity in Arch Coal (ACI). Much of the outlook may be priced in, but bears can press the downside with a tight buy stop above its 20 DMA ($22.00).


Quick Check Around the World

Asian trading closed with the Hang Seng 3.17%, Nikkei 4.46%, Sensex -4.81%, Taiwan -0.29% and Shanghai 3.16%.

Glancing towards Europe, we see the CAC -2.18% DAX -1.56%, FTSE -2.00%

As of 8:20 a.m. EST, S&P Futures are trading -17 to 986, and Nasdaq futures are -13 to 1358.


A Look At Commodities

Crude oil is trading -1.57 to 68.98. Gold is +4.40 to 761.70. Silver is +0.140 to 10.270 and copper is -2.600 to 192.50.

The dollar index is +0.262 to 85.045.


On the Radar

Economics

07:00 MBA Mortgage Applications
07:30 Challenger Job Cuts YOY
08:15 ADP Employment Change
10:00 ISM Non-Manf. Composite

Click here for the full trading radar.

Good luck today!

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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