Market Vectors Oil Services ETF (NYSEARCA:OIH) — This ETF seeks to replicate the Market Vectors US Listed Oil Services 25 Index, which tracks the overall performance of 25 of the largest publicly traded, U.S.-listed companies in the sector.
Its top 10 holdings are Schlumberger Limited. (NYSE:SLB), Halliburton Company (NYSE:HAL), Baker Hughes Incorporated (NYSE:BHI), National-Oilwell Varco, Inc. (NYSE:NOV), Cameron International Corporation (NYSE:CAM), Helmerich & Payne, Inc. (NYSE:HP), Weatherford International Plc (NYSE:WFT), Dresser-Rand Group Inc. (NYSE:DRC), Tenaris SA (ADR) (NYSE:TS) and FMC Technologies, Inc. (NYSE:FTI).
Each of these stocks gained Wednesday as investors rushed to grab bargains in the oil and gas industry, resulting in a 4.4% advance in OIH. Note that while OIH fell about half as much as pure oil plays like United States Oil Fund LP (ETF) (NYSEARCA:USO), it is recovering just as fast.
Technically, OIH’s 20-day moving average moved up through its 50-day moving average at $35 on Wednesday, rendering a short-term buy signal. By making a new double-top high off of a triple-bottom, OIH established a new intermediate uptrend with a target at approximately the midpoint of the October-to-November consolidation prior to the downside gap at $41.83 to $39.58.
Buy OIH under $37 with a target of $45, which is slightly above the 200-day moving average at $43.17, for a return of more than 20%.
Investors can buy and hold OIH as a long-term investment in the oil services industry with an objective of $55-plus. OIH currently yields 2.6%, and investors can accumulate additional shares through dividend reinvestments.
The top holdings in this ETF also provide a shopping list for traders and investors interested in individual stocks in this sector.