Wouldn't be surprised that it's related to the fear that govt will regulate drilling industry. likelihood is that this regulation will be deep water only but in this climate who knows. I'm betting this will ultimately help EVEP by devaluing target acquisitions and ultimately bring more demand for site that aren't deep sea.
Except EVEP is land-based which will not be impacted and in fact may enjoy a renaissance as the big companies have chosen to go for big ocean-based finds while the little guys stay on land and the cost of land-based drilling has come down significantly over the years.
Sold yesterday's shares at $31.70 on the open at the top.... we are back to a high volatility market and you can't hold anything that is not part of your core portfolio. Also sold another position and went to cash in my trading side.
Today's losses now exceed the lows of yesterday and we are in a serious selloff now.
Hedge funds are probably responsible for that first in the morning flushing of the toilet we felt..... all too familiar going back to the days of the crisis this is precisely what hedge funds did....
except now we know who the culprits are and why they are doing it with such forcefulness.
That stupid carry trade gets wound up so tight that any directional change (in this case the rising dollar) destroys their positioning and they are forced to go liquid en masse in all other parts of their portfolio if they intend to hang in to their position and pray the dollar falls.