I am slowly venturing back to severely pared positions in natural gas, with additions to XTO Energy (XTO) and my favorite EOG Resources (EOG). This is step 1 of a rebuild, and I hope to see lower prices in the near future on a general commodity selloff.

XTO Energy - frankly I don't like the chart and it's been lagging the peer group so I am considering perhaps changing to another name in the future, in my "basket approach" to natural gas. This chart is much worse than just about every peer I am tracking, so I am wondering if there is something company specific I am missing. That said, I had cut back severely on its run up (which also lagged the peer group), so I am sort of throwing a dart here since there is no real technical support here around $61. But its retraced 13% in 5 sessions (down from $70) and I am taking it back to a 1% exposure. I sold nearer to $66, so I am getting back some of that exposure (not all) Certainly looks like we could have downside to $56 (200 day moving average) if you looked solely at the chart.



EOG Resources - on the other hand, everything I read on this company excites me; they really seem to be hitting home runs in terms of production expansion. The stock has pulled back nicely to a first support level, the 50 day moving average right near $130 so I am adding here, as the stock is down from $145 level five sessions ago (10%). I sold a layer out around $138 but have not had a huge position here since it's been on an incredible run since last February and I've been tapping feet impatiently waiting for a meaningful pullback to build a position. I'd love to see this one falter more so I can add at lower levels. But for now we are moving her back up to a 1.4% exposure.



The 3rd name in my basket, Cabot Oil & Gas (COG) has not weakened to the point I want to buy, nearer to $57.