The sector as a whole came down to the 50 day....OIH, XLE, and many of the individual components got hit hard such as SLB, RIG, etc. NE never even hit the 50 day and stayed above when everything else was relatively more out of favor. If the Oil Service sector gets a week where they rotate into it, I think even with a mild rotation we'll see NE above 40. I've been buying NE on dips like today, and have been hedging by getting short Oil thru the SCO (leveraged short) on rallies. Oil got a boost last week on the inventory report showing a greater draw than expected, but in general storage has been up, and with all the weak numbers coming out of China, I'm really not a believer in global growth. Certainly most stocks associated with global growth have been decimated...just look at the iron ore stocks. It feels like longs have been trying to squeeze the shorts out of their positions in Oil.
Chute, thought that NE fell below 50 day when it went under 39. Now it should be looking for the 200 and if it goes under the 200 day, then what might be the next support or hopefully the final dip for this period?
I am looking for 33 bottoming out before all the "wells" are capped and the bonds blow off with the overall market.
Today was the first day it went under the 50 day which currently sits at 38.47. The 200 day is at 37.24 right now. It's still in an uptrend on a weekly chart going back to last summer when it bottomed below 30. I just drew and looked at a trendline connecting the weekly low closes from that time, and the bottom of the uptrend line kicks in fairly close to the 200 day at 37.24....so that should be pretty strong support. If that fails, 35 is also very strong support from this year. I really don't see us getting below there unless the market has a full blown correction this summer of say 10% or more. I still don't have that much stock, but I did begin today to sell July 36 puts which would give me an effective price not much above 35 if I get put the stock. I'm OK with owning alot at that price.