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Pete, RIG fulfilled its 15% correction from its recent top today. We are now back into the intermediate support territory. However, the long stochastic is only half way done but the short stochastic is near the bottom (Ron's). Not sure if long or short stochastics is more applicable this time. Only time can tell. I think if oil can stabilize a few more days above $16, the OSX and drillers will rebound. Again, I will look to oil price for further guidance. A prolonged sustainability above $16 will put a floor on the OSX and drillers. A lot of these stocks are right at support today. I re-entered again with FGI, which has corrected severely among them (but also shot up most when the euphoria was on last week) but this is a trader. Support between 12 3/4 - 13. A retreat of oil below $15 could be a prelude to the old low for the drillers. Remember, nothing has changed yet - no spending increase, still falling rig count, still weakening dayrate, etc. When fear of OPEC cheat, US slowdown, light driving season, etc. set in, these stocks will see more bottoms than one can believe <GG>. |
