The 8 million shares or so that traded in the first hour may have been the capitulation selling that produced the lows for CLF. The next week could confirm this, or she could re-test.
shares traded in the first hour taking CLF to its lows of the day then back up to 6.25 and it held that level for the rest of the day. There were several 10-20k blocks that traded here and there over the day, maybe some short covering, but I suspect most of the volume after the first hour was from bargain hunters.
We all have been wondering what the low was for CLF and I wonder if this was the line in the sand? CLF likely benefited from a great tape and the fact that the other IO producers had a great day. I am still afraid of CLF because of the macro issues for global GDP's, along with the fact that no matter what commodity you want to look at (hard or soft), most are at lows on demand concerns and/or over supply considerations.
With yesterday's downgraded given how well CLF came back and held enticed me. I waited until mid afternoon to take a position because I wanted to be sure this time, as My YTD losses in CLF are huge. I will not go long until I am convinced but it felt good to have a positive trade. It will take me a lifetime of these trades to cover my CLF losses.
I looked at 7 oils tocks this pre-market and they are all up with oi and brent being down. While pre-market does not mean much, these stocks over the past two days look like they are disconnecting from the prices of crude itself, it just needs to last.
Look at a 15 year monthly chart of SDRL. Other than during the 2008/09 recession, where the sever drop in its SP happened over a span of 5 months, SDRL shows a constant asending chart pattern with some normal smaller blips along the way followed by a quick return to growth. Volume over tha last four months was 5 - 8 times normal vol levels of the past 15 years, even harsher than the 08/09 time frame. The drop in SP this time happened over 4 months, with most of it coming from the divi cut.
Given these variables I suspect the worst for SDRl is behind now (unless a global crisis happens). Does anyone really think SDRl is going away? WS already pulled the guts out of this stock (along with all oil stocks that have near identical charts).
SDRL is a victim to what is happening to the entire sector.
Oil will adjust and so will SDRL. It is hard to imagine SDRL falling on fundamentals much below this level.
How long does this move up hold and for how far?
So much damage was done to the sector. Incredible.
Whatever the reasons for why it is happening, the consequences of this are going to be lethal. Commodity prices have been in free-fall for most of 2014 and not showing any signs of reversing.
among some other politically motivated reasons? Just another view as to how hard this collapse has hit in such a short time frame to levels below the 2009 recession levels when we are not in the same global state.
Demand and supply are not that far out of balance to merit this level of a drop in this time frame. WS had it right when they started selling these stocks in June, now everyone else is catching up. The only question is what is fair value now. Something is or was way out of whack.
I do not think (or hope) they would risk a global recession on your motivation, because what is happening now is cracking everywhere and the ripple effects may be devastating.
Not entirely so as all global GDP's were worse in 08/09 and now they are trending postive, with a few counteries being down, and those that are negative do not matter that much.
Maybe oil prices were simpky priced way too high because based all other metrics or factors, oil should not be priced at the worst part of recesssion levels.
They woke up and sold or shoorted the move up...back to even now
These prices are now at the 2008 / 2009 recession lows, when we actually were in a global recession. This must be what they are pricing oil for?
Have to wait for regular trading to see what this is.
He bought them for his own account so it does not reduce the float. What are you talking about? 4million shares bought for 11.50 average +/- is MASSIVE buying for any stock by anyone at anytime.
Please let me know what you mean by your concern?
SDRL today: Volume average on a 4% down day with a 75% YTD loss and heavy buying buy the owner (4million shares on back-to-back buys in December) and some nice reports for being a great gainer when the dust settles for oil.
The lawsuits will not mount to anything. Oil will stabilize. Anyone who wants to argue that the divi cut was bad for SDRL is wrong, as this helped saved SDRL.
SDRL is too big a player operating on its own stage and will be here for a long time.
Whenever WS stops selling oil, SDRL move up.
Wonder how much of this selling is people on margin calls, or is that even possible anymore with oil being cut in half in such short order? This is more than normal selling across the board. Maybe WS is looking at the 2008/09 lows off the recession and pricing for those lows again?
So far the global economies are no where near those GDP numbers worldwide, but the stocks in this sector think so.
This drop took damn near everyone by complete surprise, particularly the percentage moves down, almost historical lows in a hyper drop. Oils drop again today is amazing.
SDRL down 75% since July. like darn near the entire sector.
WS traders / retail investors and oil related companies are dying while OPEC does not see any need to react in any way at any time. I hope they get crushed somehow in someway because while my losses in SDRL are not sever, the chaos this is causing globally and for jobs everywhere...
They are saying it most likley because the rest of the world is pointing their fingers at OPEC, especially the Saudi's, in blaming them. Some counteries already made harsh comments about the Saudi's. They want to deflect the heat.
Atlas Energy with one insider buying over 455.00 shares.
DO with one 10% owner adding over 291,000 shares
SDRL CEO picking up 4million new shares in two transactions last week.
They are jumping in big here. I believe they know better than we what represnts extreem values?