Trend Is Your Friend:
We like to mention how once trends are in place they tend to persist more likely than they are to reverse. We have been on the train that equipment over exploration has been the correct one and the ratio chart below confirms the thesis. Will there at one point be some mean reversion? Absolutely but when that happens it would most likely make sense to add to the oil service names. Winners in the group are plentiful and that is just what you want to see as a lonely bull is a vulnerable one. One wants to see an abundance of plays carry the load and not leave the rally responsibility in just a couple of names. Leadership continues to come from stocks like a BKR now just above a 32 bullish ascending triangle pivot. RIG, although I am not a fan of single-digit stocks, has advanced in 14 of the last 19 weeks and is up 200% from the start of Q4 ’22. VAL is trading at 52-week highs and almost 7% this week. WFRD jumped 13% Wednesday after a well-received earnings reaction.