Larry Berman CFA, CMT, CTA BMO Junior Gas Index ETF ZJN-T BUY May 06, 2013

Don’t play Nat Gas commodity, but rather the equity ones. This one plays the juniors. He likes Nat Gas right now and you can make lots and lots of money here.

This tracks smaller Canadian gas producers. A word of caution is that it is not just small and junior gas producers, it also has a lot of oil service companies. This hasn’t been around for very long, but is starting to show some early signs of bottoming. A little bit early, but look for an interesting trade as we get closer to the 3^rd week of September.

FCG-N. Gas is plentiful on a supply side so there has been a lot of price pressure. He likes natural gas long term here. The sector has been beaten over a number of years. This is one of the cleaner of the carbon emission fuels. There is some election risk where they ban fracking in the US. This ETF plays juniors in the space but there is one that pays the seniors, which he would prefer: FCG-N.

Be careful. This ETF is down 50% in the last year. The trend is down now. Be patient and wait for the uptrend to begin. The balance sheets on these junior gas stocks are not great, either. Bottom-fishing here is okay.