Stock price when the opinion was issued
Recently, this has been forming a base pattern, which is typically of what would happen around the 3rd week of September and moving higher until the middle of December. Natural gas has been forming a nice little base pattern, and a couple of days ago moved above that very briefly. Usually, the stocks themselves, don’t move that quickly. We are not quite at the 3rd week in September, so currently the securities are forming a nice base pattern. Natural gas inventories in the US are right around where they should be on a 5-year basis, however, there are 2 hurricanes going into the Gulf, which is the largest natural gas producing area in the US. Because of this, in the next few weeks, natural gas inventories will not be building quite so much.
He likes this ETF to play the sector. Mostly American names that are gas-weighted. Most oil & gas plays are not gas only, though a few dominate on natural gas -- such as AR (which he owns) and OXY.
While the market's expensive, nat gas is not particularly so. He's been buying into weakness, riding to the top of the range. Likes the sector right now.
Oil and gas is a tough sector in which to be a long-term, buy-and-hold investor, unless you have conviction in the management of a company. He's more of a trader in that sense, not married to any particular management team. Long-term investing in the sector is an "Eric Nuttall question".
(A Top Pick Sept 4/15. Down 8.67%.) Seasonality did come into the sector right around the end of August, and normally goes right through until the 3rd week in December. However, this year we have had warmer than average weather in the eastern part of Canada and the US, and natural gas prices have come down quite significantly. The sector right now seems to be trying to bottom out, but the technicals are not there right now. There are lots of better opportunities elsewhere, so if you own, Sell.