I'm not selling anything either. Stochastics are great when the stock is going up and down with little in the way of major news, but like you said, when the trend changes, forget about stochastics. Dell's major run from mid 80's to almost 140 started when the stochastic was above 80.
The news over the weekend from OPEC was almost too good to be true. It was THE watershed event we had all been hoping for. My eyes bugged out on Sunday when I read the WSJIE headline; I almost had to pinch myself.
An earlier Yahoo news article referenced by Judy mentioned that "most fund managers are underweight the oil sector". Add to that fund buying (if they want to get on board, they'll be buying) and the mo-mo crowd who've got tired of pumping up Dell 'til it won't go any further. When I bought RIG call options on Feb 20th, my first target was 53, then 65. RIG today already was in the 51-52 range.
Anybody notice the volume in PTEN? Something like 600% above normal, with +6 M shares changing hands, with stock up over 20% for the day. I think this may be what is termed a "flat base breakout on heavy volume", which basically insures higher prices in the weeks to come. That PTEN chart will attract some chartist and wave theorist types, when it comes bubbling up onto the screen courtesy of stock screening software.
I bought, in the last half hour, call options in PTEN (May expiry), CDG (May expiry), NE (May expiry), PTEN (April expiry), and UTI (April expiry).
Still have my other batch of calls purchased Feb. 20th, with the exception of the DO calls, which expired.
I expect that the next few days will be spent in consolidation, but after that, the uptrend will resume (IMO). |
