NEW YORK ( TheStreet) -- Nymex crude oil peaked at $100.42 per barrel on Sept. 14, which was the day after the FOMC announced QE3. Oil subsequently declined 15.9% to $84.05, into Nov. 7. On Dec. 12, the FOMC announced QE4. Since then, oil has moved sideways to up.
Analysis of Nymex Crude Oil ($87.72): On Dec. 14, I wrote
Fundamentally, ValuEngine shows the oils-energy sector 5.2% undervalued, with the oil & gas exploration & production industry 10.0% undervalued; the oil & gas field services industry 2.0% undervalued; oil & gas international integrated industry 10.5% undervalued; the oil & gas drilling industry 3.6% undervalued; the oil & gas machinery & equipment industry 5.1% overvalued; and the oil refining and marketing industry 7.2% overvalued.
With the technicals improving for Nymex crude oil and with the oils-energy sector the most undervalued of the 16 sectors covered by ValuEngine, it's time for investors to increase allocations to this sector.Back on Oct. 2, I wrote
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