Decided to cover the rest of my short here at 28.25. May be a long on Monday or may be a short. We will see but I do think there will be a trade here Monday. Have a great week-end everyone.
Broker has been short and shorted more today. Client(mutual fund) has a bunch to sell. Broker covers, mutual selling and price remains fairly constant. Maybe there is a reason the brokerages make over 100 million a day trading. It is not inside trading though.
Great move on your part. Usually better to be able to have the discipline and cut losses. Investing at this stage is not wise. We are still making new highs in the market and yet oil drillers are making new lows. A lot of money lost if you have been holding even from August 2012 in many of these drillers.
Covered half at 28. SDRL has went nearly straight down from September 3rd so there may be a bounce. If it goes above 28.50 I will cover the rest and look to short again.
These stocks are very much like a lot of sticks in 2008. The big money was shorting them like crazy. The brokerages had clients wanting out like we have now. The brokers shorted the same shares then covered with the shares that clients selling. The result was similar to what you are seeing today. Shares fall hard.
There are very few real buyers. The buyers are brokers making big money covering. As I was typing another nice 45 cent drop.
There has been no change in these drillers. Similar to coal companies that just keep making lower highs and lower lows. SDRL continues to make new 52 week lows. Refreshers on the offer as they continue to take them lower. Never mind making 2% a year in GIC's. Make 5% or more a day shorting some of these stocks that the big boys are taking to the cleaners.
I did buy and sell this stock this morning. I was fortunate not to lose any money in my trade but I am sure many retail folks are now behind the eight ball. For your sakes I hope they cover some more soon.
The market is not rigged. They really do not use the material that is concrete such as metal frames and steel cable so from a lawyer's standpoint it is not rigged. But from the standpoint of integrity it is manipulated by rich human beings. Most of those folks now a days see values as money not character. They are really drug addicts who will steal from their own families to meet their needs.
What is the sense of paying all the money out for the SEC?
This is another example of how you do not want to be on the opposite side of the big money that does move the stock. RHT even raised guidance besides beating and this is what happened. WOW! An 8% drop.
Obviously they were taking this down no matter what. Certainly a lot more shorting taking place now by the big money folks than before. Normally this beat would have created a nice move up. Instead a rather huge butt kicking.
Riggers going the way of the coal companies. Many will not be around for long. Competition is becoming cut throat. Company's like HERO will be going bankrupt. Only the best and most profitable will survive this storm and HERO is not one of them.
After Susan Decker spoke on CNBC it appears a lot folks are taking their profits. Can not really blame them.
She left a big sense of risk in the trade where before investors felt assured they would be making more.
We will see were it goes today but at present it appears I may have been wrong. I do think that this stock will close higher next week but was thinking it may have a pullback today or tomorrow. Maybe the big boys have accumulated enough and it moves up from here or premarket may be a gap and trap. We will see.
New technology replacing the old. A continued downward spiral with folks continually catching a falling knife.
Yes they are oversold and RSI's are under 30. Yet they continue to fall. In 2010 DO was 110. Market has been a wild bull for over 4 years. DO has bee a sleeping bear with a price of 38.54 and still falling. I shared the same theme will coal companies in 2011. WLT was 140. So it was a bargain at 80, 60, 40, and now 3.44. Some drillers will make it through and others will go bankrupt. I do think more drillers then coal companies will survive.
Obviously it is a treacherous time out there. The oil companies will squeeze the drillers so be careful.