We passed the first pullback test this morning. With the strength gaining, we can go to higher high. Between now and close, I'll like to see intraday high taken out for tomorrow to be another good day. Watch this carefully. Won't be surprised if we have some pullback near the close due to traders closing their positions. Anyone has a crude update?
Remember, S&P is up today. The drillers are also up but I believe they have a positive bias in this environment. If S&P suddenly loses ground, look for profit taking in the drillers as well.
Rob, as to DO, I would not pay as much attention to DO's past price movement but the whole sector. In a typical cycle, both up or down, one always find the early laggards to catch up late in the cycle. So I always buy the late movers mid-way through the cycle if I buy anything. If you believe DO needs to cross that 46 level, set a stop when it moves close to 46. If it shoots past 46 with no looking back, you are still in. But it it meets the wall and bounces back down, your stop can save you. If it goes back up again, you buy back quick. That way, the most you lose is 1-2 points while continue to participate in the overall rally. But that 1-2 point sacrifice is your insurance. No one really knows where the future direction is going to be. One can only make educated guess. I'd still be cautious. We need one more day like today tomorrow to begin to see face to face with upper BB. Too early for confirmation of a sustained rally yet. But don't sell yet. Placing stop (for today, below intraday low) is a good way to protect capital right now. |
