Follow the Trail

One of the benefits of a commodity like natural gas coming out of the gate hot to start the new year is that so many new traders since the pandemic do not give a hoot, quite frankly, about anything other than options on growth stocks and crypto/NFTs. 

Hence, when natty takes off, as it is again today, most will either gloss over it or even have downright apathy towards the lowly commodity. In other words, the long natty gas trade is the opposite of crowded, despite the rally so far. 

True, it remains remarkably early in 2024. However, it is not a stretch to say that we are due for a brutally long winter in many parts of the country after a few mild ones. 

With this in mind, looking down the line at natty-related stocks, like Southwestern Energy, is instructive for "pin action." On the SWN monthly chart, below, we have a tightening right side of a multi-year potential base bottom. With earnings not until late-February, this is just one idea to stalk for strength off the notable move in natural gas to kick off 2024.