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

To: Todd N who wrote (25315)	7/8/1998 2:04:00 PM
From: marc chatman	Read Replies (5) \| Respond to of 95453

Well, the reason CDG is going down is that there are no serious buyers (in volume, that is), but there are many serious sellers. What I mean is that funds are not willing to buy at this point in time. They need more than a one day blip in crude futures to be convinced that crude will move up and stabilize at a level where new drilling programs will be profitable. And for the longer term picture, there is no new indication that Asian markets will be resuming their growth trend any time soon. On the other hand, I think we got some nervous shorts covering early following the API numbers and then after the Nigeria news. When there was no follow through or any indication of buying on volume, the shorts felt comfortable getting back in. As for CDG, they broke through all their support, which means all those who bought recently or long ago in the low 30's are bailing before their losses get too big, and they are using any small surge to sell. Don't worry about the other drillers participating. They aren't going up for long without CDG. Looks like another very ugly close.