I'm hearing enough investors say that they plan to "sell everything." that's normally a sign that capitulation is close.
WLL's actually holding up pretty well.
Take a look at RRC or MDR if you really want to see a blood bath.
any idea's on how much of this last several days was due to MARGIN calls..
And the entire stock market has taken it on the chin, yesterday of 27 stocks i only had one that was green at the end of the day.
On a three year chart this isn't yet close to capitulation. If the economy doesn't pick up, or even oil demand doesn't pick up, I think we're easily seeing us back to where we were at the beginning of 08 -- about $50, and it won't take even a month or two to get there.
It could also swing down to $40 as these capitulations usually overshoot the mark.
That's not the end of the world, it's just the oil boom turning to bust, as has happened many times, usually caused by demand destruction as is the case now.
This is classic capitulation. The oil play is out of favor, sellers are pannicked, shorts are making great money and no one has the cajones to buy. No one can find any reason to own oil whatsoever. If oil goes down to $75/bbl, these companies represent tremendous values at these prices. Might as well strap in at this point. If there is a great depression, we got bigger problems than the price of oil.
The oil companies themselves need to step up and buy a company. I can't remember a public oil co. getting taken out since COP bought BR. That was 2 or 3 years ago. We need someone to show what barrels are worth to a commercial buyer. Until that happens, chaos will reign in these stocks because nobody knows what barrels are worth, and in the end, these stocks are asset plays, not cash generators.