Plunging oil is taking the market down with it—or not… September 4, 2015 Archives | Unsubscribe How to Profit from a "Bad News" Natural Gas Trade Another energy snapback trade Coiled and ready Plus: Is real estate getting too frothy? Greg Guenthner coming to you from Baltimore, MD... A "bad news" rally is one of the most powerful forces in the markets. When a stock or commodity rips higher on bad news, your best move is to buy with both hands. And bad-news buying is exactly what we're seeing in natural gas this week, giving you a shot at quick, double-digit gains if you follow this emerging trend today. Here's the deal: Natty has been stuck in neutral near its 2015 lows—even as crude springboards higher this month. Yeah, you already know the price of oil is up more than 20% from its August lows. But natural gas? Let's just say it's missed all the fun. Until yesterday, that is… Natty jumped nearly 3% Thursday, posting its biggest gain in almost a month. Why? Well, the big news was that natural gas producers added a whopping 86 billion cubic feet of the stuff to storage last week. As the Wall Street Journal points out, that's 40% more than the five-year average. As you can see, we ain't exactly suffering through a gas shortage these days. Heck, we're practically swimming in the stuff. But the price natural gas didn't tank on the news. Instead, traders started buying. Natty's move higher this week should help the commodity break out of its summer funk. Just look at the tight monthly range for natural gas so far this year compared to the sharp up and down moves of the past decade: Of course, there's reason to believe that natural gas can begin a sustained run higher here into the fall. U.S. oil production is declining sharply. According to a federal report, just one of seven shale basins is expected to announce production gains. The others? Well, let's just say the crude crash has tied production in a knot. And less drilling means less natural gas byproduct. While I still think our oil snapback play has legs, some experts see natty as the ideal energy trade heading into the final stretch of 2015: "Both short-term and medium-term, natural gas producers are probably in a better place than oil producers," Oilprice.com reports. "On the one hand, demand is a mixed bag. It is not rising quite as much as once predicted, but with more power plants switching from coal to gas, consumption will continue to pick up. With energy demand more or less stagnant or at best slowly growing in the U.S., natural gas demand increases need to come primarily from taking share from other existing fuel sources." That's some "bad news" that can really boost your portfolio…  Biggest Accounting Fraud Since Enron? Get ready for another accounting scandal... one so big that it could trigger the next major financial crisis in America. According to Jim Rickards, this could be 525 times bigger than Enron. It's not just employees and investors of a specific company who are in danger... All 300 million American citizens are potential victims of this massive accounting hoax. Click here to find out if you're in danger. Rude Numbers When to Buy... When to Sell 80% of all stocks trading on major U.S. exchanges remain below their respective 50-day moving averages... $46.62 buys a barrel of crude this morning. Oil continues to digest its recent gains. It's down about 10 cents in early trading... 560 points dropped from the Nikkei today. The Japanese index fell more than 3% to finish up the trading week... $1,123 is where you'll find gold futures this morning. The Midas metal is down about a buck so far today... 1,926 marks the spot for S&P futures just before the morning bell. Stocks are poised to open deep in the red today... Rude Trends When to Buy... When to Sell We just received a new report from the housing market trenches: "A word of caution: My family members are working in various positions in this industry in Florida and I can tell you without hesitation that it is showing a lot of 'froth' similar to 2005-2006," an alert reader says. "Homebuilders large and small are buying every building lot that moves in concentrated areas (not unlike how savannah animals congregate at the last remaining water hole). New home construction was publicly reported and Southeast Florida was highlighted as the highest area of concentration. That report is dead on. But it did not reflect the intensity. If there was ever a time to be cautionary it is now." When it comes to real estate, Florida is a fascinating place. It always seems to find itself in the throes of a housing bubble or three… Last I checked, real estate in Florida was still dirt cheap in many parts—thanks to the fact that it was one of the mot overbuilt and hardest hit areas when the real estate bubble burst nearly 10 years ago. But that could be rapidly changing. However, I don't think Florida is an accurate representation of the U.S. housing market. In fact, most locations across the country are dealing with a lack of supply. That's because homebuilders have mostly sat idle for the better part of the last decade. There's a reason these homebuilders are some of the few stocks that are holding their own right now while the market corrects. I expect them to continue to outperform heading into the final months of the year…  [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] Ignore At Your Own Peril Today's Must Read Links Do you qualify to piggyback "Canadian Social Security"? 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