Two Ways To Play: Pass on Gas?
Strengthen your portfolio in good times and bad.
Active gas rigs rose to a record high this week, according to a survey by oil and gas service company Baker Hughes (BHI). Other companies, like Devon Energy (DVN) and Range Resources (RRC), are drilling wells that cost three times as much as the traditional methods of acquiring natural gas.
In just this month, gas futures have risen to over $13 per million BTU for the first time since 2005. This year, gas futures have gained nearly 80%. The performance has exceeded the rise 48% increase in oil and all commodities besides coal.
See Professor Lance Lewis' Gold, Oil The Real Deal.
From the Bull Pen: Is natural gas part of a real bull market? Those bullish can play the natural gas ETF (UNG). A pullback to the $55-60 range could be an opportunity for an upside play.
From the Bear Cave: Those bearish can revisit the Ultrashort oil & gas (DUG). Professor Sean Udall mentioned using this vehicle as this ETF has held up even in the face of rising oil prices.
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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter