I am slowly venturing back to severely pared positions in natural gas, with additions to XTO Energy (XTO) and my favorite EOG Resources (EOG). This is step 1 of a rebuild, and I hope to see lower prices in the near future on a general commodity selloff.
XTO Energy
- frankly I don't like the chart and it's been lagging the peer group
so I am considering perhaps changing to another name in the future, in
my "basket approach" to natural gas. This chart is much worse than just
about every peer I am tracking, so I am wondering if there is something
company-specific I am missing.
That said, I had cut back severely on
its run up (which also lagged the peer group), so I am sort of throwing
a dart here since there is no real technical support here around $61.
But its retraced 13% in 5 sessions (down from $70) and I am taking it
back to a 1% exposure. I sold nearer to $66, so I am getting back some
of that exposure (not all) Certainly looks like we could have downside
to $56 (200 day moving average) if you looked solely at the chart.
EOG Resources -
on the other hand, everything I read on this company excites me; they
really seem to be hitting home runs in terms of production expansion.
The stock has pulled back nicely to a first support level, the 50 day
moving average right near $130 so I am adding here, as the stock is
down from $145 level five sessions ago (10%).
Via Long Investment Ideas from Seeking Alpha:
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