While the OSX is still in the mid 70's, many oil and gas stocks are getting close to point where I would start buying.
I think we saw the bottom in NG when it got down to $1.80 last fall. We may retest the lows one more time, but the outlook for NG is still bullish despite record storage levels.
OSX under 70's is where I intend to start to take positions some full positions in select stocks.
Stocks like VPI, NBL, TMR, DNR, APA, SFY, OEI, XTO, APC and BR are either in my buying range now or within 15% of where I'd start to buy.
In oil service, I'd start buying DO, HAL, SEI, UCO, KEG, MVK, PGO, HOFF, NE, BJS, RIG, CAM and ESV anywhere near there recent lows. Others like PTEN, BHI, WFT, SII and NBR still have a little more to fall before I'd start buying.
I suspect we will see a low in oils stocks in Q1 for the next two years. I don't think any of us can count on catching the absolute bottom.
My plan is to buy select oil stocks on weakness now and be 50% invested by OSX below 70.
OSX 65 if seen, I'd be 100% invested in oil stocks.
OSX below 60, start to use margin aggressively.
I don't know why, but I'm getting the feeling we're close.
Good luck,
Jim
Any other opinions? |
