Go Where The Oil Is

  • August 23, 2001
  • Greg Che

 

Oil
was a catalyst yesterday and it appears that OPEC has
successfully slowed down production to meet the decreasing demand.
Recently the oil stocks were getting hit as were oil prices. It
appears that oil prices may have leveled,
which could signal that the beaten oil stocks could be a play once
again (at least from a contrarian view).

So needless to say, our
first stock is in the Oil-Gas Field Services group.

Energy services company
Tetra Technologies (TTI)
looks interesting. The stock is scaling up the right side of its
multi-week base. Earnings have been growing (400%, 204%, 600% and
275%) as are the companies sales.

Merit Medical Systems (MMSI)
is in a mini high level ascending triangle. The company looks poised
to test its highs.

Looking at ETF’s the Biotech
HOLDRS (BBH)
moved up 4.2% and closed above its 20 and 50 day moving averages. 

The iShares Nasdaq
Biotechnology Index (IBB)
also closed higher 3.6%.

And the WEBS-Sweden
Benchmark (EWD)
gained 1.1%.

Sliding in the session were
the Telecomunicaoes Brasileiras (TBH)
which closed lower 3.8%.

The Internet Infrastructure
HOLDRS (IIH)
slid 3.5%

While the B2B Internet
HOLDRS (BHH)
sank 2.2%

Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.

Greg

 

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