Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Bazmataz who wrote (18077)	4/5/1998 12:29:00 PM
From: Thean	Read Replies (2) of 95453

Baz, The chasing higher high scenario has worked wonderfully in a bull market especially for high flyers, in particularly the tech stocks. Buying stocks that have just make all time high with good momentum is the essense of William O'Neil method. IDB is so successful partly because of this principle. The drillers however are a different beast. If we look at the bull run between April 97 to Oct 97, I would find the leadership changed hands several times - meaning the best performers cool down and those performed worse caught up after a few weeks. This rotation phenomenon at the end created the "rising tide raise all boats" perception. On the flip side, after the drillers began to correct in Nov 97, offshore drillers that plunged the worst did not continue to lead the plunge (the land drillers are exceptions). I recalled RDC and FLC held up pretty well until later in the game. Similarly, MDCO and NE that plunged early regained their strength sooner as well. So the question is still open as to how the drillers will perform against one another going forward. I see them breaking into three categories as outlined in my yesterday's post. How long will this hold is anybody's guess.

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