Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil explorer Approach Resources (Nasdaq: AREX ) jumped 10% in trading today.
So what: Look no further than a massive spike in the price of oil for the driver of Approach Resources’ shares today. Oil is trading 4.8% higher today as investors bet that a little more certainty in Europe will help drive global demand.
Now what: Surprisingly there aren’t a lot of oil and gas stocks jumping higher despite the popping price of oil today. Earlier this month, on a day when oil only rose 2.8%, stocks were popping left and right, but today Approach Resources is a lone wolf.
I don’t see a big reason to change your investment thesis today. The rise in oil’s price was inevitable and we’re likely headed back to $100 before you know it.
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