Oils...Earnings are fine.....but..volatility extremely high. I think when earnings come out it is inevitable to bring a more or less uninterrupted surge in the sector. This will be January 14 and 15 so I'm gearing up for then.
For any of you familiar with VTS, it surged 5 points in total day before earnings, day of earnings and day AFTER earnings on a great report. I've been playing the oil sector since August 1996 and I have never had to track my stocks as much as I do now. There were times I bought CDG calls and waited for up to 1 month for a 2 or 3 bagger. Now, unfortunately, having read many different opinions about the oil sector the concensus is still the same..volatility....but great earnings. So now we have following scenarios to deal with:
1)FINANCIAL SERVICES, TRANSPORTATION, PHARMACEUTICALS, great fundamentals, great long term technical picture, but short term technical picture looks overbought.
2)TECHNOLOGY SECTOR not so great fundmentals, not so good short term technical picture albeit an oversold technology sector.
3)OIL DRILLERS/SERVICE great fundamentals, great long term (50-100 day moving average) technical picture but very not so good short term technical picture (most still below 10, 20 and 50 day moving averages).
I'm not an investor but a trader. PTEN and EVI are the only companies in which I have a small amount of shares. I have to buy the oils for intraday trades as they usually have a 2 and sometimes 3 point spread. I take them home for up to 3 days but I sell them after that. I'm not sure the days where you can buy February/March CDG's calls and just sit on them will ever arrive. I lost on my CDG calls 2 months ago as well, but I've never lost on them before. The market has changed. The tech sector has changed and until complete confidence is restored in some of these sectors it's a buy/sell buy again sell again situation for me. The good part is that it's easier to daytrade the options on these companies than ever before. (note especially day trading opportunities in options of RON,DO,RIG,EVI,HLX,MAVK)
I do the same thing with the tech sector trading in QCOM, SEBL, TKLC, MCRL, WAXS, IMIC, CPQ, ORBKF, YURI, JBIL, and a few others, over and over again and seldom taking them home overnight.
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