Beneficiaries of Going Green
Clearly, global warming, climate change, the greening of America and the globe are all front and center in the media these days. Who knows what is true, and what is not about CO2 emissions, etc., but if enough people buy into the going green idea to save planet Earth, then perhaps cleaner energy producers will benefit. Let's have a look at the U.S. Natural Gas Fund ETF chart (NYSE: UNG). Not withstanding its management issues (see our discussion in the chart annotation itself), the UNG could benefit in a big way if a treaty on the environment is signed. From a technical perspective it is forming the second low of a big double bottom (8.94 and 8.50), but most hurdle key resistance at 10.50 to trigger upside acceleration towards 12.25/50. As an alternative to the UNG, if you want a position in clean energy as part of a portfolio, you may want to look at the Powershares Clean Energy Fund (PBW), Claymore Solar Energy ETF (TAN), and Chesapeake Energy Corp. (CHK), one of the pure plays in the natural gas space.