Opinions
Larry Berman CFA, CMT, CTA
Weatherford International Inc.
WFT-N
WATCH
Jun 03, 2013
Stock price when the opinion was issued
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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.
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.