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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Mr. BSL who wrote (3152)	5/24/1998 9:35:00 PM
From: Bwe	Read Replies (3) \| Respond to of 34811

Hi Duke, I follow the oil patch myself and have posted on CDG p&f chart on this very thread. Here's an update and some random musings: Disturbing 203% rise CDG's short interest to 777,044 from 256,294. CDG is not alone in this rise in short interest: SLB: +33% HAL: +18% EVI: +37% DO: +13% TDW: +19% CKH: +8% OIL: +33% NBR: +4% RON: +19% SII: +13% Some oil service stocks, however, are experiencing declines in their short interest: NE: -49% GLM: -31% OII: -20% RIG: -51% SDC: -88% As I previously posted, two new RS sells in the sector this week with Newfield Exploration and Helmerich & Payne giving signals of future underperformance relative to the Dow for some time to come. Vintage Petroleum is one box from a RS sell signal. Complete implosion in the technical picture of CDG after a bunch of positive technical conditions. The market is in dangerous territory and is to blame in large part for CDG's troubles. Oil, however, is marching to it's own drummer and is leading CDG around by the nose. CDG is right on support here and a move to $40 would break both the bearish and bullish support lines which intersect at $41-42. Cliff's has already reached it's downside price objective at $47 and anything below that is adding insult to injury. The stock was finally able to break it's bearish resistance line as I previously posted, but now has another one to deal with and a move to $54 would do the trick. As Tom Dorsey so correctly reminded me, with the stock's beta at 1.29, wide fluctuations in the stock price are the order of the day, however, it is disconcerting to have hopes for a trend change dashed in such quick fashion. If the stock is able to hold the bullish support line here at $42, I think we'll see some price appreciation from these levels in the next few weeks. 30 week MA: $49.15 10 week MA: $45.20 Hope everyone's enjoying the holiday weekend. The weather's been beautiful here in New York and it's a bit hard to believe that this weekend ushers in the summer season. Best to all! Bruce