Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: bw who wrote (590)	6/7/1998 7:25:00 AM
From: Thean	Read Replies (1) \| Respond to of 14427

bw, the inability to continue the momentum on Friday for the drillers seem to suggest people are still using the opportunity to sell into strength. ESV did break down below $24 so the bottom is no longer at $24. As far as the thinking about all bad news being out, I disagree. The near term trading influence come primarily from sentiment and right now it is a split between the positive force (oil price has near term support, they have corrected so much, they have good publicity again on the mass media) and negative force (oil glut continues despite, dayrate continues to fall, natural gas price continues to fall, earning revision kept going lower). Those who argue the fundamentals have not changed is completely out of touch with reality. Fundamentals boils down to supply and demand and I have never seen more rigs wanting work than demanding premium since its nice run for at least the last 2 years. This has hit the offshores rigs as well. Short term I am not going to trade the drillers. If anything, I would trade the service companies like VRC and EVI. However, I think there are better opportunities in the techs on the short side.