<<Marc, doesn't it make sense to you that these oversold stocks could rise just as fast as they went down?>>
"Rise just as fast?" or "turnaround and rise just as fast?"
Actually my answer to both is the same. No. But my answer to the second is a more emphatic NO.
First, I believe fear is more powerful than greed. Except for some ridiculous short squeeze situations, down is faster than up.
Second, I feel that the carnage here has been so bad, that people will think twice, then a third and fourth time, before placing substantial money into the sector. Even if OPEC gets its act together, it will take people some time to forget that OPEC can just as easily screw up again. (People will forget; just not for some time.)
Third, once these stocks fell through their lowest technical support levels, there was nothing to hold them up. On the way up, there will be resistance from sellers every step of the way.
Fourth, Fidelity Select Energy Services Fund, and its brethren, will not be having much success attracting investment in the coming months by showing investors its recent track record.
I had some more reasons, but I'm not focusing right now. And, of course, this does not mean there cannot be nice moves up; just not nearly as fast as the move down.
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