Weatherford International Inc. (WFRD)

(Note the short timeframe.)  A leading-edge driller. His firm has a long-range view on energy. On an uptrend, which has paused for now. Real possibility it can return to $80-90 over the next 3-5 years.

Oil services. Very depressed, was in downtrend. Then broke out, now starting to move up again, very early stage uptrend. If it starts to fail, he knows his exit point (perhaps ~$50) on the trendline. A buy into a depressed sector at the right time. 

A new position as of yesterday :)  They bought 1 leg worth 1.5% of a position; if it keeps going up, will keep legging in because there's lots of upside. The next leg would be once it successfully moves through the next point of resistance, which is ~$75. When consolidations break out, it proves that there are still buyers. By legging in, if you go wrong in the early stages you can sell without your portfolio being hurt too much. Yield is 1.59%.

He is positive over the next 18 months, but you have to be confident in the energy sector. After years of disinvestment in the sector and as oil prices creep higher, he thinks this company will benefit.

In his core portfolio, he got rid of the last little bit of his energy sector. The chart shows a little bit of a new uptrend happening. It hasn’t broken the downtrend. There is potential for it to break out above its downward line, and that would be quite bullish. If it got above $6, that would really change it. Risk/reward looks pretty good. It will probably come back to revisit its floor, and if it breaks down through that, you probably want to get out. The seasonal period of energy normally is right about now.

The markets should consolidate for the next couple of months. He does not think the US housing market is as strong as people think. He would nibble against the 200 day average over the summer in the mid-$70s.

Historically oil service stocks do very well from January right through until this time of year. However, this one has not been doing that and has been underperforming the sector as well as the market. Also, probably below its 20 day moving average. There are probably better ones available.