Lehman Brothers (NYSE: LEH) has a lot to answer for… No sooner had I wrapped up this edition of “Sector Watch” than the company declared bankruptcy, thus forcing me into a swift re-write! So much for my plan to go fishing yesterday…

1-2-3 Trader editor Jim Stanton says commodity ETFs are riding the three-point waves of a downturn. After the first trough, the stock stages a small rally, before heading back down. This pattern provides good buy and sell signals for resource investors. Jim says ETFs United States Oil Fund (AMEX: USO) and United States Natural Gas Fund (AMEX: UNG) have further short-term corrections ahead, meaning an opportunity to go short.

Technical and quant analyst Jim Stanton says he has developed a trading system - the 1-2-3 Trader - that has so far brought in cumulative profits of 591%. Here he explains how he applies this system to the energy sector…

Oil is the energy resource that captures public attention, but its poor cousin natural gas could be the one now offering more interesting investment opportunities.

Folks, I’m going to do something today that I rarely ever do. I’m going to make an unabashed request for you to subscribe to Advanced Income – my covered call writing newsletter service. Stocks are in a bear market. Treasury bills are offering 2% rates of return. And your money market funds are just over 1%.

Yesterday, the U.S. Department of Energy reported the biggest BUILD in crude oil supplies in a decade, indicating a fall off in demand. Meanwhile, gasoline stockpiles FELL by 4.5 million barrels. This says gas consumption continues to rise. So how can you profit from these divergent moves in energy markets? Easier than ever before actually!