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 Basic Energy Services
So what: Dahlman Rose upgraded shares to a buy rating yesterday but the big drivers came today. Oil is up 3.6% in trading, driving oil industry service competitors like Key Energy Services
Now what: Service providers are indirectly dependent on high oil prices to boost business, so the pop on a rally in oil isn't a big surprise. Oil has been all over the place lately, so I would prefer to buy shares of Basic Energy Services when it's reaching lows. In the long term, I think oil will continue to rise, but I'm not seeing today's bounce as a buying opportunity right now.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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