Dave, good job on the charts of CDG and TMAR. I look at some of the same things as you. I'm quite a novice at TA, and don't understand how to properly set parameters for things such as MACD. When I check MACD on drillers at bigcharts.com using 3 months for time frame, it shows the MACD has headed down from a peak, which is bearish. However, all the other indicators show similar results as the charts you present. Slow stochastics also looks great on virtually all the drilling stocks' charts. I like the way the MACD looks on your charts. I realize you are looking for cross-over, but it looks to me that cross-over is imminent, although it can be hazardous to predict things like that.
As others have pointed out, earnings are still the key. Once all the smoke and fear blows away from the field, earnings will either still be there or they won't be. If earnings are still there, I believe the stocks will recover to at least some of their former glory. If earnings stay solid, I'm looking for a minimum of 60% retracement in most stocks such as CDG, for example. For others such as RIG, DO and NE (deep-water drillers that never really flew as high as others like UTI, PTEN, CDG), I think they will recover to go on to new highs. I think all this will happen before June. BWDIK, I've been wrong before, and been burned for it.
DK |
