For the last week or two, oil stocks have been selling off pretty hard. Why is this happening and what do you think it means for the market, economy, etc?
They have been too high for too long(read: overbought) There was too much negative speculation priced into crude for the past few months: iran, opec, etc. The market has a "better safe then sorry" attitude, but that attitude does not last indefinately.
i was close to dumping a few more oil stocks for 10-20%+ gains but they were all within $1 of my price target. stalled and dropped like a rock. there's a couple (WGR and DVN) i really want to dump but imo oil stocks might be oversold, especially the good companies. last dec i said i was gonna dump the oil stocks i didn't want to keep in late january no matter what. i should have stuck with it. no biggie tho cuss i still made excellent gains