Natty Gas Moving Up
Natural gas is getting a nice bounce today, and that is helping the stocks in that group. I have felt that natural gas has been trading at too steep of a discount relative to crude oil, and that the spread should narrow.
Regardless, one stock I like is Chesapeake Energy (CHK), which is well run and levered to natural gas. The stock is spiking higher today on ok volume, but it is now above its 200-day average.
Moreover, it looks like it has now completed its correction that began back in May. I am looking for this stock to continue to climb into the mid-30s. And although I don't wish for any hurricanes, if we do get one (or more) that would likely serve to drive the stock even higher.