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Strategies & Market Trends : Evaluating Rumors and News Along With T/A and F/A -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (72)	9/24/1998 8:13:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 141

Possible day trade, but I'm not sure and would be interested in opinions. Recently, the oil service stocks were taken out and shot. Dumping by funds reached a climax a few weeks ago when the OSX (oil service index) dropped from more than 120 to less than 50. Since then, it has run up to the 60's. A couple of days ago, one major OSX component RON, warned it would not meet expectations this quarter or next. Having run up from about 21 to 35 in a couple weeks, RON got hit hard on the announcement and dropped about 5 points (more than 6, intraday) on the announcement. Yesterday, it ran up 4 points in a generally bullish move for the market and the sector. Yesterday, SII, another OSX component, warned it would take a hit to earnings because of the storms in the Gulf. After a sluggish start to the day, SII ran up 3 points -- about 13%. Today, BHI, another OSX component, is announcing a big shortfall and workforce cuts. Will history repeat? The recent action tells me that the sector has turned, and that traders and funds are using any short term dips to buy. Did these issues rally simply because the market rallied big? Could be. I will be watching BHI today for a possible bounce after a sell-off. I don't know whether I will play it -- probably depends on the market action. Any opinions?