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

To: Bat5454 who wrote (4405)	12/3/1997 8:58:00 PM
From: Thean	Read Replies (1) \| Respond to of 95453

We have two days of big rallies. Even today, it is clear that those that got hammered the most bounced back the most. The percentage gain leaders were clearly the land drillers, UTI, PTEN, GW, PDS top the list. Feel good to own two of these four. The next tier winners appear to be the shallow water drillers, with CDG, MDCO, GLM occupying there. Then the groups that corrected the least, namely the deepwater drillers, took the tier 3 winners, with DO, FLC, RDC, NE etc. From looking at the charts, some drillers are actually on the upper half of their BB such as PDS (upper band near 30) and FLC (upper band near 36). So, I would expect these players to lag those which had lost more in terms of short term price gain. Drillers like MDCO, UTI and PTEN still have a loooong way to go before they reach their upper band. MDCO's upper band is near 30 for example. As to what I think will happen tomorrow, I think we will have heavy buying at the beginning. Then some more serious profit taking sets in. By day's end, we may still be up but probably not as spectacular as today - these are all very short term views. On a longer term, if one looks beyond Dec 31, this is still a good place to buy since the Stochastics is only beginning to trend up. In a normal market (I won't say this one is normal) it will take 8-10 days of upward pressure before Stochastics reaches the oversold territory. I doubt we will swing that far up on first effort. More likely, profit taking will set in sometimes in the next 5 days and take SOME drillers below today's close. Then we may even test the recent lows. There are a lot of fund managers who make buy/sell according to some technical indication. In every house there is always a resident TA guru. We have technical indicators that flash BUY right now so I think the upward pressure will be there tomorrow. But I feel almost certain this one is not going straight up. People may hope to see that but it is not very realistic IMO in the current situation. As to some last minute weakness in some drillers today, I would call it day trader's closing of positions. No real damage really. In fact, we have a handful of drillers closed at their highs.