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

To: Crimson Ghost who wrote (45663)	5/29/1999 11:53:00 AM
From: RGinPG	Read Replies (1) \| Respond to of 95453

I would be careful about looking at only the positives for the sector. This always led to significant losses for me in the past. I see a lot of negatives for the sector right now: #1) The price of oil is falling (again) osxstocks.com The fact that the OSX went up one day while the price of oil went down is not that significant to me, there is not a one to one relationship. However there is a significant and strong relationship between the price of oil and earnings, which is anticipated by the stock market. osxstocks.com #2) Earnings estimates continue to fall. osxstocks.com Although earnings estimates seem to lag changes in stock prices by a month or two in this sector. None of the stock market analysts for the sector seem to think the current prices for oil will last long, much less go up. #3) Demand for oil has yet to improve quote.bloomberg.com Refineries are cutting production due to poor profit margins, and Asian economies may have bottomed, but not too many think they are going to turn on a dime and start consuming is mass quantities any time soon. Can production cuts by OPEC overcome this lack of demand? #4) Technical analysis of the long term trend for the sector does not look good. osxstocks.com So, it may actually be time to take some profits (or minimize losses), and wait for the next correction before buying agressively again.