Oil and gas exploration and production shares and exchange traded funds have been rallying as investors bet on a shale boom. Recent data released from the International Energy Agency is supporting the profitability of major oil service companies.

"In its 'Medium-Term Oil Market Report' released Tuesday, the IEA said the production onslaught will have impact on the oil market over the next five years as much as swelling Chinese demand did over the past 15 years. What's more, it will force companies to change how they transport, store and refine oil in addition to their investment strategies," Trang Ho wrote for Investor's Business Daily.

The shale boom will have a positive impact upon major oil service companies and independent service operators. Well-known companies such as Halliburton (HAL), Schlumberger (SLB) and Baker Hughs (BHI) are in line to profit, backed up with billion dollar research and development budgets, noted John

One beneficiary of the 2013 U.S. stock market rally: defensive sectors. Until recently, classic defensive sectors like utilities, healthcare, and consumer staples outperformed as investors were just starting to dip their toes back into stocks focused on those parts of the market many considered safer and less volatile. But, as I wrote in my latest weekly commentary, over the past few weeks there has been some evidence that this is starting to change.

Utilities are down sharply in May, while healthcare and consumer staples companies are also shifting toward weaker performance. At the same time, we've seen better performance from energy, industrial, materials and technology firms, all of which are more cyclical in nature. In other words, the real Great Rotation may just be a shift to cyclical from defensive sectors rather than a move to stocks from bonds.

The shift isn't just a reflection of

As of this morning, 88% of S&P 500 companies are trading above their 50-day moving averages. This is a very high reading, but it's not quite as high as the reading we saw back in January.

(click to enlarge)Looking at the ten major sectors, the Consumer Discretionary