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3 Ways to Play the Quiet Rally in Natural Gas


Did you hear about Google (GOOG) breaking through $800? How about Blackberry's (BBRY) comeback? Are you thinking of buying the dip on Apple (AAPL)?

Just stop. Please. Momentum names are fine but big money is made in assets hiding under the radar. In the attached clip, Greg Troccoli, technician and co-founder of ChartLabPro.com has some stock ideas in a sector that's been long out of favor.

Strategically Troccoli screens markets looking for charts that are climbing the fastest using his rating methodology. He's not interested in calling bottoms or tops, but catching the middle of moves in stocks or sectors. It's a less glamorous but a higher percentage way to trade.

Having used his system to run through the entire S&P500 Troccoli found that his three top picks were all in the business developing or exploration of natural gas. The stocks are AGL Resources (GAS), Exelon (EXC) and Devon (DVN) are slowly starting to get their share of the quiet rally in the commodity.

Lost in the debate over the rising price of gasoline and falling price of copper, the United States Natural Gas Fund ETF (UNG) -one of the easiest ways for individual investors to trade the group- has gained 15% in 2013. No one seems to be discussing the sector, which is exactly Troccoli's point.

Troccoli likes the space in general but suggests sticking with natural gas names, particularly development companies. "They're now tapping into more resources, I think that's where you really want to be in the space."