Drilling Deeper to Find an Oil Play

Tickers in this article: SDRL
NEW YORK (TheStreet) -- Recently, the stock market has become less desirable very quickly. Over time I have found that weakness in the market can come on the scene rather fast in a fashion similar to the Indianapolis 500.

Now let's shift to the S&P 500. We have been zooming along at about 200 mph for the past several months, and every week I have been reporting in my newsletter the domestic stock market, small and mid-cap stocks, and biotech, pharmaceutical and the technology sectors are leading the way.

Well, all of a sudden, three things crept up on us: the debt ceiling, taper talk and Syria. They are all big threats, but Syria could be the most dangerous one.

It may lead to nothing and all blow over, but this is definitely not a time to have your foot on the accelerator because there seems to be a muffler on the track of the S&P 500 once again!

That being said, there are also new opportunities arising. On days when the market is down, I handle the day just as I do any other day. I look at my holdings one at a time. Most are holding up just fine despite the new worries. Others are not and those are the ones I want to shed.

Currently, I have had a pretty good-sized position in an income/dividend stock that is oil-related, which seems like a good place to me to be right now considering the troubles going on in the Middle East. In fact, I added to my position recently, which was good timing because the stock continues to hit new highs.

This is a stock that I own in my growth and income accounts. I do not have people invested right now in bonds or Real Estate Investment Trusts earning those dividends and coupon rates. Why? Because bonds and REIT's are interest rate-sensitive and interest rates are going up. Instead, I have an eclectic mix of stocks that pay dividends and also, in my opinion, have the potential for capital appreciation going forward.