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

To: Thomas M. who wrote (4893)	12/11/1997 8:54:00 PM
From: The Perfect Hedge	Respond to of 95453

Yep.If he's wrong I know you guys will bring out the ax for his head.GD

To: Thomas M. who wrote (4893)	12/11/1997 9:10:00 PM
From: Thean	Read Replies (1) \| Respond to of 95453

Tom, seen the charts and here is my take. <strictly short term because I am near sighted> 1) Most drillers bounced off their lows (except PDS which I'm eying very closely again because tomorrow is the last day before they report on Monday). This simply means the drillers trade in parallel to the overall market today. Low in late morning and climbed back up only to lose some steam in the last half hour. People are generally nervous and traders don't want to hold it overnight. 2) Today's large volume means people are giving up en-mass on the belief that the recent rebounce will continue short term, especially after having 2-3 days of smaller down days. This means nothing on tomorrow action though, IMO. The key is going to be the overall market. If the overall market tanks again, don't expect the drillers to recover tomorrow. Be a contrarian makes some sense here because this is where one wants to be, buy when nobody wants it. But trade it, don't hang on to it especially over the weekend if things turn sour again tomorrow intraday. Who knows, Mr Yelsin may be gone by Monday and we have mourning in financial markets across the globe comes Monday. 3) A number of drillers, e.g. MDCO, PDS and RDC to name a few, came close to the bottom of their lower BB's. MDCO bounced back pretty good. The lower band has now been flat for the last week or so therefore I would look for that flat line as strong bottom support. If prices get there, we have a double bottom and supports will be found there, at least for a while. 4) Mid-range crossover occurs on the Stochastics. It can go either way. A bounce back crossover can happen if we have at least 3-4% gain tomorrow. If tomorrow is a down day, the bet is strong we are going to retest the recent low. 5) The recent leader, FLC, got a ride today. It tells me otherwise longer term holding "investors" let it go this morning and FLC dropped like a stone. But hey, as I always say, the money that is going to buy the stock (or sector) back up is going to come from those who sell early. FLC accomplishes that today. I sold early and bought it back at a panic selling price. Since I was a trader today, I guess other traders do the same. Still the leader in my book. 6) Some people want to know which stock to buy if one were to pick one. This is the time to look back at the table I put together a few days ago. Decide first your time frame, then your comfort level with volatility, then take your pick. Here is the link: Message 2911355