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

To: Lois R who wrote (15855)	3/22/1998 10:58:00 AM
From: Thean	Read Replies (3) \| Respond to of 95453

Lois, when there is an overriding event happens TA typically goes to extreme. Overall the drillers are not in overbought territory yet so they have some room to move. They will be overbought if we move up 20% from here in 2-3 days. However, the leading indicator is still the price of crude. If oil goes up $1, the drillers may go up 5%. If $2, then maybe 10%. If for some reason the traders decide to short oil and oil tanks $1, I would look for profit taking in the drillers as well. Don't know if it would be down 5% because the energy sector and especially the drillers have become the #1 value sector right now. Monday should be an up day. For now, I'll stick with Ron's model of 2-3 more up days before severe profit taking set in. Oil needs to be securely above $17 with no fear of dropping back below it before we can put floor on the drillers price. The OPEC/Non-OPEC effort is a very positive first step and we need to follow the development for a while before we can be sure we are out of the wood. The natural gas price may also help and so far it seems natural gas and crude are trading in tandem (for the past week). Heyward - get optimistic? Reread Ron's article about the sentiment swing.