Top Picks Update
Actually it should be the top 4 update or maybe even the top 2 because everything looks questionable for next week. The graphic in the weekend email was incorrect for the top picks.
I scanned all the plays again trying to decide which should be the top plays for next week and it was tough to pick even two. The drop in oil prices has simply taken all the wind out of the energy stocks and until crude picks a direction I expect them to remain flat.
I had hoped crude would rise this week because of the Iran tensions, the sudden appearance of tropical storm Edouard just south of Louisiana and simply because it is oversold.
Crude prices opened up Sunday night about a buck but it is having trouble holding that level. This should be a warning. When the prices don't hold on potential bad news we could be looking at another retest of support at $122.
With that in mind I am going to name CHK, FLS and RIG the best buys today but caution about making any plays at all. It is about 2:30AM on Monday and still a lot of dark before morning. Crude could blast off as more people wake up and hear about the storm but the last update I heard they don't think it will really hurt the oil patch.
Keeping your powder dry for another retest of support might be the best idea.