http://stockcharts.com/h-sc/ui?s=oih&p=D&b=9&g=0&id=p64940932772 This is my gut speaking and what I believe is happening right now. I dont believe the selloff was due to the weather. Is everyone going to stop using oil because of some warm weather? Is OPEC going to simply stand back, watch and go ho-hum? I will now tell you what I believe is happening. In late December, the hedge funds bought a lot of contracts. Look at the WTIC spot chart on stockcharts.com. You can see the contracts gapping up. That was the hedge funds taking bets that the historical trend of oil going up in January would be real. After all, the last few inventory reports have been very bullish and shown good drawdowns. Many hedge funds were not only panic selling those contracts today, but shorting it as well. What happens after there is severe shorting, there is covering. I believe that there is an Island Reversal coming. When there is an event, such as the huge oil price drop, no one at a trading desk has time to figure it out or to ask questions. They panic sell and then there are those who short. One of the stocks I am looking at is HLX and its sister DVR. HLX is at the bottom of its range on the chart. Im going out on a limb with this risky call. The downturn is a temporary event.