Investors are drooling over stocks — and with good reason…
The market’s in full-on melt-up mode. Nine out of the last 10 trading days have ended positive for the S&P. It’s an awesome sight.
But there’s a big, sneaky rally happening right under your nose. Yet no one’s really talking about it — mainly because everyone’s so amped up about the strength of the broad market.
Here’s what you’re missing: Crude is quickly moving toward $100. In fact, crude’s gains have more than doubled up the S&P since the beginning of November.
Take a look:
Crude has rapidly bubbled up since the beginning of December. If it finishes this week higher, it will be Texas tea’s eighth straight week of gains.
I also took the liberty of throwing in some equally ridiculous moves from a couple of related stocks. Hess Corp. (NYSE:HES) is fresh off gains of more than 9%… just yesterday (bottom right). The stock is up more than 18% during the past five trading days.
If that’s not enough for you, oil services stocks are absolutely killing it. Check out Halliburton Co. (NYSE:HAL) posting gains of more than 25% since November (bottom left). Shares have taken only a couple days off since the start of 2013. After raising guidance in its fourth-quarter earnings report earlier this week, Haliburton gapped dramatically higher for the second time this year.
I find oil services to be especially intriguing since the sector has yet to break above its 2012 highs. Sure, we’ve already seen some big moves. But it’s still early.
So snap out of it, Clampett! Get to stalking your favorite black gold plays today…
for The Daily Reckoning
Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.
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