This market is continuing to rip higher mostly on the back of financial stocks, but pretty much everything is going along for the ride. Except natural gas, of course, which just happens to be one of my largest holdings. Natural gas prices have now moved to seven year lows as supply numbers continue to come in high. I'm not too worried, however, because we're dealing with a commodity that is necessary. We're not talking about some junk stock that just reported bad earnings. Now that the market is convinced a recovery is at hand (I dispute the size of the recovery, as the market is pricing in a fairly strong one), its only a matter of time before gas prices start to rise again. Industrial and commercial demand is the driver of usage right now, and if we do see a recovery, usage is going to jump. Although its been a cooler summer, and the hurricane season hasn't been active yet, I still think we'll see benefit heading towards, and especially into 2010.
Of course my strategy of waiting for a correction to buy heavier into stocks isn't looking great right now, but I have plenty of patience. There are a handful of stocks out there I like, and I've been discussing them over the past few weeks. I'm just playing the waiting game for a bit, and I think I'll be paid off for my patience.
Disclosure: Long UNG