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.

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

To: Fredman who wrote (31159)	10/27/1998 6:51:00 AM
From: Francois H. Gaston	Read Replies (2) \| Respond to of 95453

Abrupt reversal (for many "reasons" stated in numerous previous posts) may not happen as fast as one would think. Yes: some oil stocks went up too fast... But so did amazon.com From 40 to 120 just on the "impression" that Amazon.com was going to be a winner (how many benefited from the all run up? probably very few... and many lost a lot shorting it... Sometimes, markets enter a manic and euphoric phase... like the ongoing action in oil stocks (IMHO) and biggest gains can be made then (but I also agree: we, the "long siders" are also taking our biggest risks right now!... but think of it: shorts are also taking biggest risks, especially if trading becomes maniaco-euphoric!... they could be shaken off as well as longs.... future will tell...). Doubble bottom was obviously a key support for this latest run. This oil stock run may not be finished: we are not yet technically "overbought" in most oil stocks... just stretched... and valuations are still "low" as compared to some crazy stocks such as Lucent. As said previously: markets are mean and will leave some "specialists who know a lot about their field" in the dust (such as oilbugs in this case). This latest run for some of these oil stocks are classics for the books, IMHO. There is much more risks in being on the short side, right now, during such a manic euphoric buying period, than being long because of this recent solid double bottom and and the ongoing uptrend and winter coming, and :possible El Nina, and gas guzzling vehicles and Asia in somewhat better shape and nasty hurricane in the carrabeans... pessimisms persist about oils (see Cheryl Einhorn's article in latest Barrons)... and not forgetting some more shorts covering.... One should be on the sideline instead, if this run is too "unconfortable" to some. Prime time shorting time will come... may be soon... but not for me right now... All the above IMHO, of course. FHG and BTW: it is starting to feel colder in the Northeast and weather in northern Europe has not been great lately... meteo.fr and I personally don't think that we are in a full blown maniaco-euphoric phase quite yet for the oil stocks... May happen or may not...