An Important Rating Shift for This Beaten-Down Industry
Caleb Holloway couldn't believe his eyes as the fluid gushed out of the offshore oil rig... Holloway didn't know it yet, but he was minutes away from witnessing the biggest environmental disaster in decades...
An Important Rating Shift for This Beaten-Down Industry
By Marc Chaikin, founder, Chaikin Analytics
Caleb Holloway couldn't believe his eyes as the fluid gushed out of the offshore oil rig...
Holloway didn't know it yet, but he was minutes away from witnessing the biggest environmental disaster in decades...
Three years earlier, he got a job as a "floorhand" working for offshore drilling giant Transocean (RIG). His job involved tough tasks like loading the steel pipe used in drilling a new oil well.
It was a low-level position. But Holloway got to work on the Deepwater Horizon. It was one of the biggest, fanciest oil rigs in the world.
In April 2010, the Deepwater Horizon was working about 50 miles off the coast of Louisiana. The crew was drilling a well for BP (BP) – the U.K. oil giant formerly known as British Petroleum.
Late in the evening on April 20, Holloway had almost finished his shift. He was walking across the main deck of the rig when he saw the problem...
On the nearby drilling platform, "mud" was shooting out of the well. "Mud" is the common term for the drilling fluid that gets pumped down the well during the drilling process.
He and a coworker ran up the stairs to the drilling floor. The mud looked like a geyser.
Holloway called his boss. The drilling team assembled quickly.
Over the next 10 minutes, the team went through basic safety measures. They rerouted the flow into the separator – a system that helps let off gas coming up from the well.
But it wasn't enough. The next step was engaging the "blowout preventer" – or "BOP" for short.
This is a massive 400-ton cap that sits on top of the well on the ocean floor. It can seal off the well in a worst-case scenario.
But the Deepwater Horizon's BOP didn't work. Pressurized oil and gas continued to blow all over the platform.
Then, disaster struck...
An explosion detonated across the drilling platform. The blast rocked the entire rig.
Holloway miraculously survived. He made it to the main deck just before the explosion.
Afterward, Holloway went back to find survivors. He helped people get into one of the rig's lifeboats. He jumped in just as it left the burning rig.
In total, 11 men died on the Deepwater Horizon. Amazingly, 115 people made it out alive.
Two days later, the rig sank into the Gulf of Mexico.
After that, oil and gas kept gushing from the seafloor. It took nearly three months to contain the well. During that time, roughly 134 million gallons of oil leaked into the ocean.
You probably saw coverage of the Deepwater Horizon disaster back in 2010. It dominated the news cycle for months. And the tragic event cast a shadow over the whole industry.
More recently, the oil-services industry has gone through a tough two-year stretch...
However, the Power Gauge recently spotted a shift for these stocks. So let's take a closer look...
In 2020, Marc Chaikin called the end of the longest bull market in history, weeks before stocks crashed more than 30%. Two years later, he sounded the alarm again, 90 days before stocks plummeted 20%. Now, he's calling for the next great bear market in 2026. Today, he'll tell you exactly how to prepare... including exactly when to SELL your stocks for the highest potential gains and the lowest possible losses. Learn more here.
It started as a whisper – an obscure technology buried in research labs. Then Sam Altman made his largest personal investment. Bill Gates doubled down. Even the White House stepped in. And now a January 1 deadline could flip the switch. The story is bigger than anyone realizes. See the full reveal here.
The Power Gauge Perspective on the Oil-Services Industry
You see, we track this corner of the market in our system with the SPDR S&P Oil & Gas Equipment & Services Fund (XES).
Since late 2023, the Power Gauge has been mostly "bearish" on XES. But take a look at the fund over the past year...
As you can see, XES got hit hard in the wake of "Liberation Day" in April...
But by September, the fund had recovered. In late October, its relative strength versus the S&P 500 Index started soaring higher. And then, it finally flipped into "bullish" territory in the Power Gauge.
Today, XES earns a "very bullish" rating in our system. And out of 30 of its holdings with ratings, only two of them get a "bearish" or worse grade right now.
Folks, it's important to remember that the broader energy sector is cyclical. The space is full of booms and busts.
Of course, that's also the case when we get more specific to oilfield services...
But put simply, the Power Gauge has spotted a shift for this corner of the market. Keep an eye on oilfield-services stocks.
Good investing,
Marc Chaikin
P.S. When it comes to booms and busts, it probably feels like we've been seeing more and more of them...
And as we look ahead to 2026, I'm expecting some big changes for the market. In fact, there's a 65% chance of an outright bear market next year.
It's critical to make sure your portfolio is prepared for a potential wave of swift, brutal sell-offs. And in a brand-new presentation, I'm sharing the details of a never-before-seen way to do just that.
Make sure you don't get caught off guard for what's likely ahead next year. See this new presentation and learn how to position yourself right here.
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.45%
9
13
8
S&P 500
-1.1%
103
248
146
Nasdaq
-1.85%
20
53
27
Small Caps
-1.06%
662
897
339
Bonds
-0.09%
Energy
+2.21%
3
13
6
— According to the Chaikin Power Bar, Small Cap stocks are more Bullish than Large Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Materials
+2.15%
Consumer Staples
+1.83%
Financial
+1.37%
Health Care
+1.08%
Consumer Discretionary
+0.68%
Real Estate
+0.37%
Utilities
+0.07%
Communication
-1.08%
Industrials
-1.62%
Energy
-3.03%
Information Technology
-6.28%
* * * *
Industry Focus
Retail Services
15
39
22
Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +2.07%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved up 2 slots over the past week.
Indicative Stocks
AAP
Advance Auto Parts,
AZO
AutoZone, Inc.
BBWI
Bath & Body Works, I
* * * *
Top Movers
Gainers
TPL
+7.59%
DVN
+5.3%
COP
+4.62%
OXY
+4.39%
CMG
+3.76%
Losers
GEV
-10.5%
VST
-7.77%
GNRC
-6.78%
CEG
-6.74%
NRG
-6.66%
* * * *
Earnings Report
Earnings Surprises
MU Micron Technology, Inc.
Q1
$4.78
Beat by $0.82
GIS General Mills, Inc.
Q2
$1.10
Beat by $0.07
JBL Jabil Inc.
Q1
$2.85
Beat by $0.12
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at indra21poetra@gmail.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
Tidak ada komentar:
Posting Komentar