Hi Rudy, nice ride today, eh? I got out of some oil service stocks early, but I should have gotten out two days ago and should have sold everything. I would have saved myself a bundle. The signs were there on the charts, I believe, and I should have realized the pre-employment report sell-off would not spare the sector. I suckered myself into thinking that the oil conference in Houston would pump the sector just like the tech conferences pump the tech stocks.
Now comes the tricky part -- buying back at lower prices. I'll be looking for support levels and trendlines, along with a slowdown in volume (that will be tough since the volume today was light already).
Check out the channel movement on the OSX. It has moved down from its highs last year in almost a perfect channel, and it has been moving up similarly this year. Unless the market tanks big time, I look for the OSX to make a higher low. I see trendline support roughly at 114, and below that the previous cycle low. We could easily see the trendline tomorrow.
Now, time to start checking the charts on the individual stocks. Assuming the favorites continue to pull back (e.g., RIG, RON, EVI, CDG, and a few others), you may want to look at some in addition to the stocks you listed a few days ago. I think the funds interested in the sector will jump at the opportunity to get some of these at lower prices. |
