Oil prices have rallied significantly over the past two weeks, and energy stocks have seen an even more pronounced run. Dan Dicker, Energy Contributor at TheStreet, tells Jill Malandrino the move is more related to sector rotation rather than the relationship of the underlying commodity to the stocks. Earnings are just around the corner and Dicker expects a bad quarter as depressed oil prices will impact the balance sheet. Even with an Iranian deal that looks to be in jeopardy and increased demand expectations from the EIA, Dicker believes that oil will remain range bound, and, therefore, energy stocks still do not represent a good value at these levels. Dicker believes stock prices do not reflect $55 oil and many of the names have outrun their course. He recommends waiting for a pullback before adding long exposure.
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