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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (56252)	12/7/1999 9:00:00 AM
From: marc chatman	Read Replies (4) \| Respond to of 95453

Thanks, Roebear. I can't really see a H&S for SLB. I suppose the support to which they refer is the trendline connecting the lows of October and November. Most stocks are either sitting on that trendline or have broken it already. I think the odds are high right now that this sector will move lower. I've noticed that the blips up are smaller and last for shorter periods. The momentum is building to the downside. Add to that the Rule of "George" as the OS stocks are ignoring the rally in oil (crude is very close to making a negative macd divergence -- end of wave 5? -- and, if it does, it should correct significantly). In the foreseeable future, we could have investors cashing out not only losses, but gains as well, as many who bought near the bottom will have held for the one year cap. gains period. And we also have the spectre of an OPEC meeting, prior to which there will be a lot of speculation regarding increased production. Earnings should improve sequentially for many OS companies, but significant improvement is not likely to show up in the financials for several more quarters. Things are getting much better in the oil patch, but that doesn't mean they can't get worse for OS stocks. 10 or 15 or 20 points down in the OSX now will cause a lot of pain. I can stand the pain as long as it's not mine. <g>