$100 Oil!

Well its finally happened, Oil breached the triple digital per barrel threshold. It was bound to happen with the supply numbers being dimished rapidly and all the civil unrest in the oil producing nations around the world.

Oil eased a bit from record levels but still managed a record close above $99.
Going into the Spring its anticipated that oil will retreat from these lofty levels, but from a technical trading standpoint Oil is still headed slightly higher, the psychological level of $100 is firmly being pushed on the commodities front.

There's a trade possible here and I would specifically like the drillers, such as Transocean (RIG), whose offshore operational rigs are plentiful and amongst the best in the business, and the company just got another endorsement from the famous Jim Cramer. While RIG has indeed doubled over the course of a year the important earnings metrics havn't yet flown off the handle. So there is still some room there to expand future P/E metrics. But as energy and oil related stocks breach further and further highs it'll take rationality to not get caught up in the expected seasonal fall.

Disclosure: Author does not own RIG