Oil Flames Out
February 15th, 2006 by BWV
I use 2 real-time Scanners for new daily Highs & Lows. They are helpful for guaging “what’s going on” intraday.. and for seeing if any stocks on my watchlists are moving big. (It’s all free thru www.trade-ideas.com, but they have a more in-depth paid service also)
The New Lows scan could not be more full of Oil and Energy stocks today.
Looks like Energy stocks are riding off into the sunset. And for the first time in a while, I have no Energy-related stocks in the portfolio.
I sold my recent Tenaris (TS) buy for a loss.. they sell pipes for oil drilling. I attempted a long play in oil major Total (TOT) a few hours ago after it had sold off sharply into an earnings announcement.. but took a really quick (and small) loss as the bottom was apparently not in after all.
There’s gotta be lots of overhead supply in those stocks… the (supremely) latecomers are looking to get out whole now. My little losses in stocks like Nabors (NBR) up in the low 80’s and Edge (EPEX) in the low 30’s now look OK compared to their current $68 and $27 price tags.
The Oil Service ETF (OIH) has seen massive distribution and is now below its 50 day moving avg. Even the monster stock MIND can’t catch a bid.
What a reversal of fortunes.
Doh.. just saw TOT and NBR go off again on the New Lows scanner.
None, and staying away for now
