Nat Gas update: XOP

SPDR S&P Oil & Gas Exploration & Production Select Industry Index ETF

Thursday, June 3, 2 pm Eastern: 40.88

Friday, June 11, close: 43.00

Gain: +5.19%

Candlestick analysis: "Hold" on buy at 41.39, June 10 (American Bulls)

Summary: The 5.2% gain seems paltry, but look back on the chart and XOP was all the way down at 37.02 thanks to BP. The oil sector's strength of late helps, but it might be safer to play nat gas in a pure play instead. 

Natty Gasser: XOP

SPDR S&P Oil & Gas Exploration & Production Select Industry Index ETF

Fund Summary

The investment seeks to replicate as closely as possible, before expenses, the performance of an index derived from the oil and gas exploration and production segment of a U.S. total market composite index. The fund uses a passive management strategy to track the total return performance of the S&P Oil & Gas Exploration & Production Select Industry index. The index is derived from the oil and gas exploration and production portion of the S&P Total Market index. It is an equal weighted market cap index. The fund is nondiversified.

Candlestick Analysis: "Buy Confirmed" today at 41.99 (American Bulls)

Nat Gas for Obama

Natural gas stocks are up since 2 pm Eastern Wednesday, when President Obama proclaimed the unofficial start to seriously developing "clean energy." It sounded like it, anyway. There's a lot of homework to be done here, but here's what I'm watching:

CHK (23.62): Chesapeake Energy, up 3.3% since Obama's speech, is a pure nat gas play (no oil) and is a favorite of Jim Cramer.

DIG (28.56): ProShares Ultra Oil & Gas, up 3.9%, "corresponds to twice the daily performance of the Dow Jones US Oil & Gas Index," according to the profile page on Yahoo.

FCG (16.90): First Trust ISE-Revere Natural Gas Index is up 3.7% and barely moves intraday. Average volume is 906k.

IEO (51.96): iShares Dow Jones US Oil & Gas Index is up 2.7%, but is another light trader (599k avg volume).

PXJ (14.68): PowerShares Dynamic Oil & Gas Services is up 2.3% and is the most thinly traded on this list (87k avg).

UNG (7.75): United States Natural Gas Fund is up 3.6%, taking new recent highs today with huge volume beginning at 10:31 am Eastern. Easily one of the most liquid on this list with average volume at 27.6 million shares per day.

UPL (50.78): Ultra Petroleum is up 3.1%, slightly better than CHK. Question is, what makes CHK a better stock and/or company?

XOP (41.77): SPDR S&P Oil & Gas Exploration & Production Select tracks the index of the (almost) same name. Shares are up 2.0%.

XTO Energy (43.35): Up 2.0%.

No feel for nat gas, but that may change with some homework. Some images about nat gas, and an interesting video of Harvard students questioning Chesapeake Energy CEO Aubrey McClendon.