The International Energy Agency now sees world demand at 13.2 million barrels per day, up from 13 MBD.
— Wall Street Journal
That does not sound like a big increase but it is probably an estimate on the low side. Our projection of higher oil and energy share prices is proving correct, let’s take a look.
Apache (APA) vaulted over its $30 resistance and gapped up to $32.62.
DIG, a leveraged energy ETF, has jumped from $38.50 to $43.11.
Transocean (RIG) has taken off from a long term low of $4.50 to $5.88. RIG is trading for 44% of book value. No other company could duplicate their inventory of offshore drilling rigs.
Patterson (PTEN) has experienced a lot of insider (company executives and board members) selling shares. I think they are wrong. PTEN jumped today to $11.61 and is trading for book value.
Halliburton (HAL) has also broken out after registering a huge outside reversal day Wednesday to break above all four daily moving averages on my charts.
Newpark Resources (NR) has done the same rising from $6.00 to $7.12.
An energy boom flies in the face of the FED’s ‘we will cut rates this year’ mantra. And does not bode well for Team Biden’s election campaign.
We have observed that the stock market rally is dependent on the performance of the Magnificent Seven Stocks. I just checked and all are down with TESLA just about cut in half from a year ago, now trading at $162.50
The best measure of stock market strength is the NASD 100 or NDX, the top 100 NASD stocks, which are mostly in the tech sector. A daily sell signal is in effect but that has occurred many times during this post October 2023 rally. NDX weekly would need a close below 17,538 to confirm a sell signal. Weekly indicators are far more important than daily signs.
Team Biden seems determined to tell Israel how to conduct the Hamas war, the Israeli government will ignore this advice. Meanwhile the U.S. Navy is still short of a 350 ship fleet. The Army is at the lowest level since before WWII. Only 70% of Air Force planes are flight ready. If I know this, rest assured our adversaries are even more aware.
Best news is that the advance of energy and service shares bodes well for the Permian Basin economy.
