GD, I'm seeing 7-10% spike early morning across the board tomorrow from their Friday's close. Too many positive events to not have this happened. There will be massive short covering the first few minutes after open. Most likely we will have order imbalance and open delay in NYSE drillers. That is a given. With this strength, many off-shore drillers will break their downtrend resistence line at least intraday tomorrow. Therefore, the question is on the sustainability of this spike by mid-day. I'm sensing the first wave of momentum money coming into the drillers. Remember it was the mo-money that took it up and trashed it down. The #1 hint for this is Cramer bought back in on Friday only after 3-4 days from the most recent bottom. Other than the deeply discounted land drillers (except PKD), two days of strong days (5-10% each) will mean we are coming face to face with the upper BB.
If the momentum money can continue to come in and build momentum, the first technical sign is riding the upper BB wave. If that happens, we have the first confirmed sign of a technical reversal.
I would not sell into strength tomorrow on first sign of weakness. More likely we will see people buying on intraday weakness tomorrow. I'm riding it as high as it will take us. Make sure not to take profit too early. Funny I'm saying this now because the sentiment has truly changed.
My personal pick for best percentage gainers in this seemingly truer rally: PTEN, UTI, BDI, KEG, MDCO, CDG, FGII, EVI. Very simple logic, they fell the hardest so they bounce the sharpest. Should be a good week next week. MDCO and TDW announce earning tomorrow. No need to say good luck. It's been taken care of at least for tomorrow. |
