Leading Off…This Oil Stock is on the March

June 05, 2014

Screen Shot 2014-05-05 at 9.13.38 PMTim Reazor
Chief Investment Strategist
NorAm Asset Management

Leading Off…This Oil Stock is on the March

I want to expand upon the oil theme I’ve been talking about for awhile.  Whether you’ve followed me on the USO trade, want more energy exposure or simply missed the move until now; Diamondback Energy (FANG) might be for you.

 In full disclosure we’re in FANG here at the shop. We’ve been in since around the $70 level.  The question to ask is why?  FANG currently sports all the attributes of a leading stock.  It’s in the upper 2% of the market.  It’s so strong fundamentally and technically on an apples to apples comparison FANG is beating 98% of all stocks traded (I don’t count or care to count OTC) for it’s fundamental and technical prowess.

 FANG is also in the top20 industry sub-groups and trades over a million shares a day on average – all important factors for me.

On top of FANG’s rising 1.2 up/down volume (which I like – I want 1.0 or greater) the stock also sports an accelerating relative strength line.  Add up all of the above factors and add in the accelerating growth and FANG is downright sexy.

Have you missed the move?  No.    FANG is about 2% above a $76.80ish buy-pt.

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A few more notes… This isn’t a recommendation.   To learn how to scale in and size your positions properly for this market listen to the podcast from my radio show that I co-host with Danny Stewart.  I cover this topic extensively.

http://www.thewallstreetshuffle.com/category/podcasts/  

You can listen to the show live on Saturday’s at 10:00 AM – just click this link and bookmark it – http://www.iheart.com/live/1190AM-4276/?autoplay=true

You can also listen via the iHeart Radio app.  Simply download the app to your smartphone and search for 1190 AM Dallas.  There is even an alarm you can set to remind you of when our show is on.

If you want to come into my office and learn about credit spreads send me an email.  It would be a pleasure to meet, bond and talk stocks together – [email protected]

I often talk stocks and markets on twitter – you can follow me by searching for my handle – @TJReazor

I hope today’s newsletter helped.

Best Regards,

Tim

The information presented is for educational and entertainment purposes only.  Opinions and information expressed are based upon information considered reliable.  However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.  

Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.

 

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