having bought in at 8.40
So my question for any unbiased investors is should I double up at 7.00 to lower my cost avg., sell all now, or just sit and wait???
Scratching my head on this one.
The price of oil rose to near $88 a barrel Thursday as an unexpected drop in U.S. stockpiles of crude triggered a modest recovery from a sharp sell-off the day before.
By early afternoon in Europe, benchmark oil for May delivery was up $1.20 to $87.88 a barrel in electronic trading on the New York Mercantile Exchange. The contract dropped $2.04, or 2.3 percent, on Wednesday — the fourth daily drop of at least 2 percent in April.
A report released Wednesday by the U.S. Energy Information Administration showed U.S. crude inventories falling by 1.23 million barrels in the week ending April 12. A drop in supplies can be due to higher demand but the week to week data is volatile and inventories are still near their highest level since 1990.
Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had been expecting crude stocks to rise by 1.25 million barrels.
Concerns over global economic growth have caused prices to drop sharply over the past week in commodity and stock markets.
The gloom began Monday, when a report of slower-than-expected economic growth in China helped trigger a broad sell-off in commodities that included the biggest one-day drop in the price of gold in 30 years. The International Monetary Fund lowered its outlook for world economic growth this year and the U.S. and several European countries released weak indicators.
Experts predicted oil prices were likely to face headwinds in the coming days.
"Concerns about demand in the wake of recent weaker economic figures from the U.S. and China, the two biggest consumers of oil, and the increase in U.S. oil production to its highest level since July 1992, are weighing on market sentiment," said a report from Commerzbank in Frankfurt. "As a result, more financial investors are likely to withdraw from the oil market, thereby exacerbating the price slide."
In London, Brent crude, which is used to price oil used by many U.S. refiners, was up $1.26 to $98.95 on the ICE Futures exchange.
West Texas Intermediate crude oil has seen a precipitous drop over the last 52-weeks. Having traded over $106 at this time last year, the U.S. benchmark for oil is trading under $90 a barrel and down more than 4% for 2013. Charles Nenner of the Charles Nenner Research Center says crude is nearing a bottom and may be heading higher for grim reasons.
He's looking for a near term low just under $85 sometime in the next week or two. Nenner says the crude catalyst is based not on economic strength but a global conflict, likely stemming from the Middle East. "My cycles show that we're going to have a major conflict starting this year," says Nenner with stunning pragmatism, "and that is a very good reason why oil prices could shoot up."
Having forecast a major geopolitical conflict, the obvious question is to ask what that might mean for natural gas prices. In Nenner's view nat gas is going to give back the one year double he predicted on Breakout more than a year ago.
Now he sees natural gas in a trading range but only as a weigh station on the way back down. "There's a big down move coming, but not yet," he concludes. If and when that sell-off manifests itself the old lows well under $2.00 are Nenner's target price.
Looking at sdrl three year charts are the wrong thing to do, I believe.
Lot of things have changed in three years.
The companies business has grown along with the divy.
The stock trades with more strength now than it did just a year ago, probably due to more institutional support.
A year or so ago we had trouble breaking and holding 36 dollars on several qtrs. and now we do it with ease.
In my humble opinion support levels have changed and are no longer as low as they used to be.
I don't mean that sdrl's pps could not fall allot further under certain conditions, but if it does I see it rapidly rising with any improvement.
In a couple years I expect sdrl to be firing on all cylinders.
Hopefully the world economies will again be showing strong growth and oil prices will follow.
SDRL's div should be at 1 dollar + by then and I expect the stock to head to 45-50.
So in the meantime buy low and collect all the divy's you can which will reduce your cost basis.
The prospects look bright.
In my calculation we are at a turning point for sdrl in the near term, at this roughly 34.5 level.
If we don't hold this I see an possible downtrend to the 33.30 level which will not happen overnight and would be a great buy in the short term. All I know is I would love to get some there, just before the div run starts.
What you people are missing is that sdrl is a slow grower and is mostly owned for the div.
This is the same reason people own mtge reits and other high div payers.
You want something safer but with a smaller div, then yes, buy KO, MCD etc.
I have been in sdrl and have traded it for two years without a loss, so you are obviously doing something wrong.
But good luck to you on your next endeavor.
I looked up the definition of terrorist act once.
The dictionary defined it as one who causes panic and anxiety in others.
AF does fit that bill.
You obviously have not paid attention to Elstockjocks advice, or you would know that it's time to buy not sell.