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Make hay while the sun shines in oil and gas stocks

Oil and gas stocks continue to be the hot sector in
the market together with the technology sector
but unfortunately, only these two sectors are seeing
strength (see Mpower Special Report), which
indicate confidence is lacking in the market.

Small caps and ACE stocks continue to rebound but
they are not value trap but could be just a bear
rebound.

That said, traders should go where the action is and
trade the above sectors/small caps/ACE but keep a
tight stop loss.

Our oil and gas stocks selection did extremely well and
we are taking some profits on the Model Portfolio O&G
stocks like Deleum, Dayang and Hibiscus which went up between 20% to 30% in two weeks.

Keep a tight stop loss on the
speculative O&G stocks like Barakah and Bumi
Armada that has gone up a lot while holding on
to Yinson (which broke out of a rectangle pattern),
Dialog and Sapura subject to their stop loss given and not hit.

Commodity prices like crude oil are prone to wild
swings and while expecting further upside, we do not
want to see Brent crude oil go down back below two key levels as highlighted in the report.

Critical levels to watch for major oil and gas stocks in the
next few days are given in today’s Mpower Oil and Gas report.