Random Stock Market Thoughts

Monday, August 14, 2006

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Idea with Oil

This week I have an idea. I think oil stocks are going to take a break this week, and head to the south. In the short term they have lost their catalyst. The war is taking a break, oil is flowing in Alaska, and its options expiration. By the end of the week I could see OIH (the Oil stock ETF) at 130 or possibly 125. It will close the week at a multiple of 5 due to options expiration, the only question is how low can it go. Given my belief that oil stocks are going down this week I made a few sales today in hopes of reloading friday. My favorite pick in the bunch is NBR. If oil falls like I think it will, it may be wise to pick some shares up in some sort of oil company. Keep in mind these stocks have the wind at their back with probably the best fundamentals you can find.

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