A few months ago the sector recieved an upgrade when the Index was 110. Today the index closed at 70. These stocks have been falling 5% a day. What happened? Did anything fundamental change? Oil prices have stayed near the highs for the year. Natural gas prices have come down some. But this doesn't seem to be the reason. My take is that alot of people were hiding in these stocks as a defensive play. Now they are puking them out as it has become apparent there is no safe place to hide in this market. I lost alot shorting these stocks as the index moved above 100. And now I've lost money last few days buying them as it drops to 70. I must be a sorry ass OSX trader. IT seems that when it comes to trading the OSX, technicals rule the day. Buyem when they are falling and you get smoked. Like wise short them when they are going up and you are dead. Anyone here have success trading OSX? What is your methodology.
Silk, If you look at OIH you may find it to your liking. I was short a while, but covered way too early. Seems there is support around 50, but at this rate that shouldn't be a problem. Here is a link that breaks down the companies held. http://www.holdrs.com/holdrs/main/index.asp
Chas, you're not kidding, not just here, but several times over the past few weeks I have covered my shorts only to wish I had pressed a little more. I am starting to feel like I did in the 90s where I would take a profit only to realize I had gotten off a rocket. Think I will start looking at my charts in a headstand just to relive the memories. As for OIH, it has had several nice rallies over the past year. Seems like any time there is world trouble and OIL spikes it runs higher.
The drillers are great to trade because they all are so highly correlated and they trend during the day, plus they have good daily ranges. I put up level 2's and t&s for 3-5 of them and when one spreads up or down, I hit the others. Works 7 out of 10 times. Just look for a leader in the group you are watching and play the laggards.
Speaking of oil, IB announced that it now has access to the oil and gas emini futures. The volume is probably still too low for most traders, but its something to keep track of.
GSF and WFT are two of my top performing stocks today. I was late to the party for the sector, but pulled out a few bucks. Corey
i was way late too, and focusing on different things. never heard of gsf. all the other usual suspects, though, are like old friends (or lovers, given how tempermental they are).