Cold Play: Don't Load Up on Canadian Energy Stocks
NEW YORK (TheStreet) -- Before I analyze the Canadian oil-and-gas market and the stocks that trade in the U.S., I will describe the weekly chart for the S&P 500. If the S&P 500 (1626.13) ends this week below its five-week modified moving average at 1620.51, with its momentum (12x3x3 weekly slow stochastic) reading declining below 80.00 on a scale of 00.00 to 100.00, the weekly chart profile will shift to negative.
Chart Courtesy of Thomson/Reuters
The weekly chart for crude oil ($94.78) will remain positive with a close this week above its five-week MMA at $94.28 with rising momentum. Oil is well above its 200-week simple moving average at $88.57. My quarterly value level is $79.66 with a monthly pivot at $92.32 and annual risky level at $115.23.
Chart Courtesy of Thomson/ReutersFundamentally the market is trading under a ValuEngine valuation warning, with 71.5% of all stocks overvalued and 32.6% of all stocks overvalued by 20% or more. There are 558 stocks in the oils-energy sector, with only one rated strong buy and just 13 rated buy. There are 137 sell-rated stocks and 45 strong sell-rated stocks. With 32.6% of all stocks in the sector rated sell, I give oils-energy sector an underweight rating. OV / UN Valued - The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating - A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy. Last 12-Month Return (%) - Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. Forecast 1-Year Return - Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV