With its low production costs for natural gas that now roughly stand at breakeven, Cimarex could easily surpass expectations if natural gas prices conform to the forecast and remain above $4 per MMBtu for the foreseeable future. This company is a solid, conservative play on rising natural gas prices.

I’m adding Cimarex Energy to the Resources sleeve as a buy under 76.

When I added Brazilian homebuilder Gafisa Group (NYSE: GFA) this past May, the company appeared to be coming off a troubled run.

Gafisa ran into problems when it acquired Tenda in 2008, a company focused primarily on building low-income housing largely funded through government urban renewal programs. But as administrative problems resulted in construction delays and cost overruns, it became clear that Tenda was in need of a massive overhaul.

The company’s operational results have been steadily improving in recent quarters as the turnaround plan continues to take shape, but cancelations remain a challenge.

Meanwhile, housing inventory across the company’s markets is on the rise and Brazil’s macro environment remains challenging. Sell Gafisa.

As the economic recovery in the US and across much of the developed world gains steam, emerging market debt will become increasingly less attractive.

The global macro environment continues to favor equities over bonds, so we recommend that you sell Market Vectors Emerging Markets Local Currency Bond ETF.

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