Some energy services stocks appear poised to perform well despite the recent slide in crude prices. Remember crude is still at historically high levels.
One example is oilfield services provider Schlumberger who said Friday its second-quarter profit increased nearly 13 percent, explains Pete Najarian. The profit increase comes from heavier spending among customers to find more fossil fuels which isn't influenced signifcantly by the day to day movements in crude contracts.
That should bode well for outfits like Halliburton, ConocoPhillips and Baker Hughes which also provide technology, equipment and other services to help oil and natural gas companies find and tap reserves.
Ahead of earnings I’d play any of the stocks mentioned above from the long side, Pete says.
I think you can trade it as along as you have an exit plan, adds Jeff Macke. Remember the technicals are broken.