Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Platter who wrote (4029)	12/1/1997 9:46:00 AM
From: Big Dog	Read Replies (2) of 95453

FWIW from Rightline Report Sunday night issue: To a great extent the recent market weakness and volatility has been driven by mutual fund end of the year selling in preparation for their capital gains distributions that occur in December.ÿ Fidelity, one of the largest mutual fund families has pretty much finished its selling.ÿ Big funds that own huge positions can dramatically influence the short term behavior in stocks.ÿ The Oil Drillers have been pulled down recently in a large part for exactly this reason.ÿ Nothing has fundamentally changed in the sector.ÿ This sector has proven that they have the earnings and revenue growth that is needed to fuel a move higher.ÿ With the selling done with, the Drillers should benefit and may well be the leading group in December and January. There are a lot of institutions and average traders who are short or own puts in the Oil Drillers who will need to cover these positions.ÿ The covering of short positions is net buying pressure.ÿ A stock or sector that has a lot of short/put interest combined that is backed up with good numbers can often make a powerful recovery after a correction.ÿ

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