True, Schlumberger's stock has meandered in the past three months, but that's just a disguise.

Oilfield and energy services company Schlumberger (NYSE: SLB), first recommended on May 6, 2009 at a price of $56.05, remains well-positioned to benefit from the secular trend of increased oil and natural gas exploration and development.

"The Warren Buffet related Muni-Bond insurance plan was a positive catalyst," notes options and market timing expert Larry McMillan in The Daily Strategist. Here, he looks at the overall market and some select buy signals in individual stocks.

"The multiple re-tests of the support area around 1310-1320 has inspired confidence as buyers have emerged. And the S&P 500 Index has been able to stage a strong rally above the 1350 level in the interim. This is a first positive step.

"Sector support behind the rally remains primarily in the Energy sector: however, the Financial sector has joined in somewhat. A continuation of these sectors rallying in concert would bode well for a continuation of he current rally.

Gasoline inventories dropped below their five-year average and are now 6% below last year's average, according to Joseph Dancy, an adjunct professor at Southern Methodist University, in an essay published in Barron's this weekend.

This means the outlook for investing in energy remains good, Dancy believes, as demand for gasoline will grow 2% with little supply relief in sight. Particularly the lack of new refinery capacity means positive growth prospects for a company like Matrix Service Company (NASDAQ: MTRX) that specializes in repair and maintenance services to the refining, distribution and pipelines sectors.

Dancy wrote the supply and demand balance for energy could mean a sharp escalation of energy prices. Mexico's Cantarell field's output, the second largest in the world as measured by output, declined 17% in March from year-earlier levels, while offset by new production increases at a nearby field, total crude production from Mexico is down 5%. In addition, Venezuela production should get hit at some point as Chavez has taken control of exploring for and producing energy away from the foreign experts. And Nigeria, who sends 1 million barrels per day to the US, is also in a politically tenuous situation.

Add to this, the huge swing producer, Saudi Arabia, announced that is will no longer increase production after 2009, which might indicate the nature of its oil reserves.

In addition to Matrix, Arena Resources Inc (NYSE: ARD), OMNI Energy Services Corporation (NASDAQ: OMNI), Pioneer Drilling Company (AMEX: PDC), Natural Gas Services Group Inc (AMEX: NGS) were mentioned as attractive investment ideas.

Anadarko Petroleum (NYSE:APC) is on my watch list. It closed today at $42.47 down 48 cents. It popped up on my screen when it hit my target of $42.00 per share and a price-to-earnings (P/E) ratio near 5; that's very low for this caliber of company.

So I took a closer look at some other factors. I already liked the fact that they are deeply involved in energy -- a currently undervalued segment of the economy. Half its oil and natural gas reserves are in North America and management has been making good decisions for a decade, so the track record is there. One decision I like was increasing its reserves and selling some Gulf Coast assets.

Anadarko has a 52-week high of $56.97 and is near it's low of $39.51. At 36% off it's high it is looking very tempting. Oil and natural gas prices are down significantly and APC's price reflects that; however, I'm thinking, do they go up from here, or down -- which is more likely? I say up eventually, and sooner rather than later. What do I get if I buy and hold? Maybe 'dead money' for six to nine months plus a small dividend yield of .83% or maybe prices rise and the stock just makes a small move up.