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

To: Iceberg who wrote (3694)	11/24/1997 7:24:00 PM
From: 18acastra	Read Replies (2) \| Respond to of 95453

Downturn in sector primarily started with Far East collpase. People worried that slowdown in PacRim economies lowers worldwide demand for oil. At the same time, many stocks had aggressively run-up, and their valuations were very high (they already factored in all the good news). I am not claiming that they were fairly valued at their peaks (some may have been overvalued by people piling on-> again why "air" comes out of sector so fast). Several other nuances as well that poeple are worried a lot about. Today was exacerbated by overall bad day in market. The "spooking" was started by a fundamental concern. At some point there is an overreaction. It all depends what one believes about the degree of PacRim slowdown and overall effect on worldwide demand/prices and related US drilling activity. Believe me, piles of money are not coming out of these stocks because the charts look bad. Even Fidelity does not invest based on technical analysis. My opinion.