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Oil Service HOLDRS (AMEX: OIH)
Says Market Timer Frank Kollar
January 5, 2007 (FinancialWire) (By Frank Kollar)
Oil is searching for a bottom, but after losing close to 9% in only two days, buyers may be getting to re-enter the market. Declining oil prices may be are great for consumers, but for those holding related stocks, such as the exchange-traded fund Oil Service HOLDRS (AMEX: OIH), the last few days have been a world of pain.
OIH is heavily weighted in such energy powerhouses as, Baker Hughes Incorporated (NYSE: BHI), Halliburton Company (NYSE: HAL) and Schlumberger Limited (NYSE: SLB) and provides investors with a diversified exposure to the oil service industry . Companies that provide drilling, well site management and related products and services for the oil service industry.
Thursday’s close was just below a strong support level at $130.71. If this breaks, look for support at $125.20. The selling should be nearing an end and nimble traders may be able to make some quick profits in coming days.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy currently has a position in the Oil Service HOLDRS.
Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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