Time to go into the oil patch? Here are some stocks to consider. (April 10, 2018)


Let’s look at oil. I look at oil every day but I haven’t really looked at any stocks because I have been waiting for this: USO ( NYSEARCA: USO ), I have been waiting for oil to start showing us that it is going to do something other than sit around and do nothing. We finally got this move today. We are not quite at a breakout yet; here ( XOIL.X ) is what this looks like. We are close to breaking out, right? I will go ahead and set my alert right here. If oil breaks out you can always go for the “triple your fun” ETF ( NYSEARCA: GUSH ), the bull ETF on oil, you are just buying this ETF but it is really kind of a day trading thing. Nice move today, up almost 13 points so you can check that out.

A couple others to keep in mind: The XLE (NYSEARCA: XLE ), just the broad market energy ETF with all the big cap names in it; this works. Hopefully, it will pull back a bit tomorrow but I would just say, prior resistance at 69.00 should be current support. So if the stock does pull back to 69.00 it should hold support right there. If it doesn’t then this breakout is a fakeout and you really don’t want to be in there.

Valero ( NYSE: VLO ); a nice move today. This is now popping out of a volatility squeeze and very, very close to this $100.00 level. A breakout above 100.00, it is so close right now, why buy it now? Why not just wait to see whether the stock is going to break out above 100.00 and keep on going. So check that out. By the way, if you do buy Valero ( NYSE: VLO ), they report in a few weeks, right? If you buy Valero ( NYSE: VLO ) make sure you keep a stop, maybe a $2.00 stop below where you buy it so you are keeping a real tight risk management control on that.

ConocoPhillips ( NYSE: COP ). Frankly, I like Valero ( NYSE: VLO ) better because of the potential that it has. But COP ( NYSE: COP ) is working well too. It is kind of a deep and steep cup and handle pattern here. I would just keep a stop maybe a little bit below 60.00, that’s less than a 5 percent stop.

Just a couple more: Helmerich & Payne ( NYSE: HP ), also a breakout on volume so this should move tomorrow. I would look for 5, 6, 7 percent on it over the next few days. You keep your stop right back into the cluster; maybe a 3 percent stop on where you are buying.

And then finally, HAL, no, not 2001, Halliburton ( NYSE: HAL); a nice break out here. Again, we’re not up to an all-time high here. The best breakouts are the ones where this type of a pattern here actually occurs much closer to the recent high like around here; the traditional cup and handle type pattern. We like that kind of tightening phase and then look for this kind of a breakout. We are not seeing it, we are actually seeing that clear down here but you can see the same dynamic. I am looking for higher prices from this as well. You are buying this; you are keeping a stop 3 or 4 percent below and that will get it done.

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