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

To: The Perfect Hedge who wrote (7438)	1/9/1998 9:15:00 PM
From: Dwight E. Karlsen	Respond to of 95453

I'm getting tempted to jump back into the oil patch on Monday. I know that this sector has seen more bottoms than Jacque Cousteau (-G- okay I admit, I didn't originate that), but still, I'm figuring I can hardly go wrong going long at these prices. I haven't checked out all the prices yet, but virtually all of these stocks are at unbelievable levels. Last night I was looking at a bunch of oil svc/driller stock prices and charts, and I thought they were at bargain basement prices yesterday. -G- Makes my head spin. DK

To: The Perfect Hedge who wrote (7438)	1/10/1998 8:55:00 AM
From: Thean	Read Replies (1) \| Respond to of 95453

Having watched CNBC after close yesterday, noticed an across the board worries for the overall market. Every analyst appeared said the market is going down and hard time ahead. Will see. "Shorting against the box" - sell similar stocks one has in long position. For example, if one has 100 share of NE long, and one sells short 100 share of NE later, then one sells short against the box. What this achieves is in a falling market one is taking no further risk in the stock (downside) after shorting against the box. I think this may work fine for the drillers since it is going to a lower trading range for a while. When they bottom and turn around, one can cover the short and still hold the long positions for the ride during the bounce up. In this way, one gets eat both sides of the pie. If the price movement pattern of the drillers indicates anything (we are seeing the December ghost and we are going to have 1/2 bounce for every 1 fall), then this strategy is worth consideration. From the chart the bottom is near for at least a 1/2 bounce. Has anyone looked at the weekly chart yet. Take a look and pay particular attention to the stochastics. We appear to hit oversold as well on the stochastics on IQC on the weekly chart. Another thing, we are very near the price level of last April. MDCO's bottom at 13 3/4 - 14 is a real one. If it gets there, I'm in BIG time. Same can be said for UTI.