Whilst the broader market closed with minor gains, there was notable strength in energy stocks. The oil/gas drillers of Transocean (RIG) and Seadrill (SDRL) settled higher by a very significant 4.9% and 7.6% respectively. Near/mid term outlook is bullish, back to the levels from last November.
With WTIC Oil prices continuing to climb from the March low of $42.41, energy stocks are seeing some relief after a horrific down wave since last summer.
Both RIG and SDRL look set for continued gains into the summer... along with Oil.. which itself should get stuck somewhere in the $67/75 zone.
To be clear.. Oil is still seeing an over-supply, and after a multi-month bounce, I see renewed downside.. probably into 2016.
*I am long term bullish on RIG and SDRL, but for the moment, I have no interest in going long at these prices.. or at this particular time.