I first wrote about Schlumberger (SLB) here on May 6, 2009, at a price of $56.09. Shares of oil and natural gas servicer have jet-streamed toward major, psychological resistance at $100, easily clearing $90 on the way. It goes without saying that if you haven't already, now would be a good time to consider taking some profits off the table.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain, as SLB will likely continue to head north.

Further, I'd raise the sell/stop loss to $68 from $63.

A little over a week ago the chart players took short positions in the oil sector. Since then the world has changed dramatically.

Egypt is engulfed in a civil uprising and protesters are clamoring for President Hosni Mubarak to step down. Uncertainty is the new state of affairs. Uncertainty breeds fear and fear has taken over the energy sector.

The chart guys quickly covered their shorts and now the bulls have the market. This is fundamental. Three million barrels of oil a day pass through the Suez Canal and the Sumed pipeline. You can throw the charts out the window.

On Friday, oil field giant Schlumberger (SLB) posted a 31% profit for the fourth quarter, as reported in the Wall Street Journal (subscription required). Earnings rose to $1.04 billion, or 76 cents per share, from $795 million, or 65 cents per share, a year ago.The acquisition of Smith International contributed revenue of $2.49 billion and earnings of $275 million in the quarter.

CEO Andrew Gould said that an increase in global demand should drive growth in deepwater drilling around the world and revive onshore activity.

Oil/natural gas servicer Schlumberger (SLB), which I first wrote about on May 6, 2009, at a price of $56.09, continues to move higher, so if you haven't already -- now would be a good time to consider taking some profits off the table.

Further, I'd raise the sell/stop loss to $63 from $57 at this juncture.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain.

The earnings season ramps up this week. Analysts polled by Thomson Reuters foresee strong reports from such big names as Apple (AAPL), eBay (EBAY), IBM (IBM), General Electric (GE), Google (GOOG), Schlumberger (SLB) and Southwest Airlines (LUV). And fast on the heels of last week's big earnings beat from JPMorgan Chase (JPM), there will be plenty more results from the financial sector to peruse this week.

Among the financials expected to post double-digit earnings growth this week are Capital One Financial (COF), Morgan Stanley (MS), SLM Corp. (SLM) and U.S. Bancorp (USB), but the week's biggest earnings winner may be Wells Fargo (WFC).

The shares of oil/natural gas servicer Schlumberger Limited (SLB), first written about here on May 6, 2009, at a price of $56.09, have vaulted higher this fall, from about $59 to $80. Now would be a good time to consider taking some profits off the table.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain.

The removal of the U.S. deepwater offshore oil drilling moratorium and an oil price that never seems to dip for too long -- it's averaged better than $70 per barrel for months -- spell good things for Schlumberger, and institutional investors have piled in to the stock.

Silver futures are recently trading near 30-year highs. iShares Silver Trust (SLV) December 31 and January 35 calls are active on overall call option volume of 180K,(73K puts). Option implied volatility of 43 is above its 26-week average of 35, according to Track Data, suggesting traders are pricing in large movement.

Schlumberger (SLB) volatility has decreased as shares have trended to 27-month highs. Crude oil futures are recently up 0.59% to $88.31, according to Bloomberg. Overall option implied volatility of 32 is below its 26-week average of 35, according to Track Data, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Analyst Upgrades

• Macquarie upgraded Intel (INTC) to outperform from neutral and Advanced Micro (AMD) to neutral from underperform.
• Pfizer (PFE) was upgraded to outperform from market perform at Bernstein.
• Capstead Mortgage (CMO) was upgraded to outperform from market perform at FBR Capital.
• Oppenheimer upgraded Halliburton (HAL) to outperform from perform.
• Gilead (GILD) was upgraded to outperform from sector perform at RBC Capital.
• Skilled Healthcare (SKH) was upgraded to outperform from market perform at JMP Securities.
• Citigroup upgraded CapitalSource (CSE) to buy from hold.

"Schlumberger Limited (SLB) is the biggest oil services company, hands down. As such, the firm's operations extend into just about every imaginable oil or gas-producing region of the world," says energy industry specialist Elliott Gue.

The editor of The Energy Strategist asserts, "The company, in our view, is in the sweet spot of the oil-services cycle.

"Despite Schlumberger's exposure to the Gulf, the hit to the company's bottom line shouldn't be too dramatic, nor will it affect long-term growth prospects. At this valuation the stock already prices in these headwinds.

"I continue to regard the dip in oil-levered and select energy stocks as a massive buying opportunity," says energy sector specialist Elliott Gue.

The editor of The Energy Strategist explains, "Among individual stocks, I see an opportunity with Baker Hughes (BHI), Schlumberger (SLB), Weatherford International (WFT). All of these companies garner just 5 to 10 percent of their revenues from the deepwater Gulf of Mexico.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Lockheed Martin Corp. (LMT) lower Q1 earnings were better than expected but it lowered its full-year outlook.
• McDonald's Corp. (MCD) solid Q1 numbers were driven by its value menu, McCafe, and strength overseas.
• Microsoft Corp. (MSFT) topped Q1 earnings expectations and cash from operations rose, but shares declined.
• Netflix Inc. (NFLX) shares were lifted after its strong Q1 earnings beat consensus estimates.
• PepsiCo Inc. (PEP) fell short of Q1 revenue estimates but beat earnings per share expectations by a penny.