Is Oil Services HOLDRS (NYSE: OIH) Bottoming? Asks Market Timer Frank Kollar
April 2, 2009 (FinancialWire) (By Frank Kollar)
Shares of Oil Services HOLDRS (NYSE: OIH) have been headed lower after a brief rally in mid-March. Is a bottom in sight?
Oil Services has an interesting chart, and looking at it without any consideration for the long or short term prospects of oil, you can see a solid bottom has been in place since November 2008. That bottom is at about $65.65.
These lows have been tested at least five times since November, the most recent being in early March. On each test, it has held. If this is a bottom, it means there is a low risk trade that may be taken.
A long position at current levels with a stop loss at $65.60 limits losses to 12%. A lower entry would be ideal, but if this risk limit is acceptable to you, Oil Services looks good for a long trade here.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Oil Services HOLDRS.
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.
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.
Go to previous Press Releases & Trading Notes.
Note: These Press Releases are short term in nature. They may or may not reflect the same position as current subscriber reports which typically have longer time frames.
© Copyright 1996-2009, Kollar Market Analytics, Inc., All Rights Reserved.
FibTimer reports may not be redistributed without permission. These Trading Notes however may be distributed without permission.
Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
