Steve, oil is being held up due to both seasonable factor and the recent storms. No one (at least not the irrational permabulls) believes that oil price can sustain at above $15, and now $14's is also in danger. However, no one wants to touch OSX stocks. They knew the fundies story, they saw the historical chart (this is really the deja vu W scenario), they looked at the overall market and they executed on the battle cry of the day - sell the biggest losers first.
Oil and OSX is still coupled, just that one is more exaggerated in its move than the other. Having said all these, OSX is due a technical rebound though. However, I don't see them recovering strongly unless there are some extraordinary items coming out like mideast war, further OPEC tightening, etc.
For trading, FGII will continue to be a good candidate. It hit support today and bounced back. I expect a pop tomorrow but will have to see if OIL and the overall market cooperates too. |
