Dr. Slim,
re:<<Now that everyone has seemed to have foresaken "new highs" for a root canal or two, what's your take? >>
Hope I'm not butting in here, but... First, new highs for some are not incompatible with the overall root canal scenario, and in fact new highs were reached by a few companies over the short time in question. As to anyone's take on things, my take is that nothing has changed much in the past couple of months. If you recall, a few months back pretty much everyone here knew that (1) the oil service sector stocks are tied to the price of oil, (2) there is an enormous glut of oil that is not going to go away any time soon, (3) there will not be a sustained recovery in the price of the oil service stocks until there is a sustained recovery in the price of oil and, so (4) prices of oil services stocks can be expected to trade with a lot of volatility within a trading range that probably has the 1Q lows as the bottom of the range and highs that are not very far north of that. The problem seems to be that every time these stocks move a couple of points one way or the other we think we've learned something new. Seems to me that: if you're actively trading, you can take the 10-20% swings in both directions, and if you're looking for a major advance above the old highs, be prepared to wait 6 months or more. That's my take, anyway. (Btw, I wouldn't forsake a new high if I could get one, especially if the only alternative you're offering is a root canal. <G>) |
