Cabot the Sharp Cheese; Cabot the Sharp Chart

If it seem as though the tone and tenor of our analysis since early-October has focused on special long situations in line with a generally defensive view of the broad market, it is because our intent is to stay opportunistic and upbeat during market corrections without taking unnecessarily large drawdowns. 

Oftentimes during market corrections, you will see market players and pundits alike bemoan the wild price swings and seemingly random price moves, complete with head-fakes, as their own bad luck, changing their minds and market bias countless times during the same session and indulging in self-pity. While it may be a type of schadenfreude to read those emotional basket-cases, it is worth remembering that emotions can be infectious and we as speculators must always guard against a toxic mindset--The mind is a powerful thing when it comes to money, indeed. 

As a result, we fully understand that the market correction is still playing out with no concrete evidence of a bottom, yet. We favor a generally heavy cash position and a tight leash on longs. However, there are some standouts, potential new leaders to stalk, and special situations like natural gas to play.

We have previously noted RRC and SWN as two natty-related stalwarts. Well, in addition you will find Cabot Oil & Gas (not Cabot Creamery, the producer of cheeses you see in the supermarket), below on its daily chart flagging back above all moving averages.

Natty continues to be a special case, as it should be given that while stocks were in a nonstop bull run for years on end, natty could barely stand up straight for a bounce without being scared of its own shadow. But now that it is rallying nicely, a select few natty-related equities are beginning to emerge as unique, correction-defying stocks which we always want to have in our arsenal as opportunistic traders who still respect the risks of an ongoing market correction.