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

To: JHR who wrote (7736)	3/11/1999 11:38:00 PM
From: Thean	Read Replies (1) \| Respond to of 14427

About trading the drillers... At some point some of us will be buying high and selling low in this evitable flip-flop every few days. I think more discipline is called for here. For example, if one missed the boat on a driller and it went ballistic and shot up 10%, DON'T CHASE IT. Wait for a pullback and reenter or buy one that hasn't move. If one has 10% profit in one day, POCKET some. Spread out across several companies in different sectors, e.g. a deepwater, a shallow water and a service company. Today the service companies perform worse than the drillers. Further, the land drillers continued to outperform the shallow water which outperformed the deepwater. With the look of things, the chance is good that the drillers will not sell off with no rebound strength unless there is a confirmed big disappointment in the OPEC. OPEC will not pre-announce their ineptitude in coorperating, that I'm sure. Therefore, the positive trend of the drillers will very likely be intact for another week. March 23 is on a Tuesday 10 days from now. Assuming this trend continues to suck in the greed money (the big institution money who fear missing the boat), the drillers should recover their lost ground very soon. If history repeats itself, the drillers should close on a strong note going into the weekend because one never knows what will transpire over the weekend. A 10% gap up on Monday is just too tempting to risk <GG> in case good news come out. I would not close underwater positions tomorrow morning. I expect an early morning strength tomorrow after today's profit taking. However, oil price will again be king and it can override all trading strategies whether we want it or not <GG>.