Friday, November 30, 2007

Oil Services ETF



The oil service stocks have been hammered lately, and OIH (OSX ETF) recently hit 203/share is down almost in the straight line from there almost thirty bucks. The oil services basket is trying to stabilize around the 171 level, Oil prices are down from a 100, 12 bucks in a week. The oil service stocks usually go up before Crude. We are in seasonally the best time to buy oil service stocks with the winter freeze upon us, the only conflicting thing i see here is that the $BPENER, bullish percent energy index doesn't appear as oversold as I would wish and that fact is keeping me from going all in to this trade. Time to start nibbling.

Posted by prudentstockinvestor M.D. at 2:39 PM

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$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.