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April 30, 2013  Tue 8:18 AM CT

EOG: SEE CHART GET CHAIN FIND STRATEGIES
The performance of the energy sector has been amazing.

You get one strong day in oil, and the group goes crazy. Check out the action in the most-levered-to-oil players: EOG up almost $3 and Continental Resources up nearly $2 out of nowhere. These stocks are just coiled springs, and every time they come in they have to be bought. I would love to buy them in deep-in-the-money calls.

Meanwhile, the action in the coal-related rails is incredible as well. Last week on CNBC's "Mad Money" we heard AEP chief Nick Akins saying that his company is actively switching to coal because natural gas has gotten too high. That's why Norfolk Southern has now run 20 points.

TheStreet.com logoWhat a run. Makes you want to speculate on Peabody but, alas, that's a China play and you sure don't want to play China right now.

Meanwhile, the natural-gas stocks--led by Southwestern, which bought some assets from Chesapeake--don't want to quit, despite the switching. The group is incredibly strong.

These moves are broad and powerful. They are dazzling because they can't be occurring with some economic strength, though one could argue that, once again, everything's being priced off the oil futures and the oil futures are going higher because of that old correlation to the weaker dollar.

No matter, the group, including the drillers and service companies, has been biding its time. Now it seems, at last, that it's happening.

I would not overthink it. The Philly Oil Service Sector is the right way to play it.

Disclosures: Cramer's charitable trust has no positions in the stocks mentioned.
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