Continue Lower

Today feels great! Just last Friday I got rid of my longs in order to start ’09 with a clean slate– Fly’s orders. I can’t tell you how happy I am to see stocks trade lower today. It also helps that I’m long FAZ (I’m short the banks 3X’s) and short PTR.

It’s amazing to see oil trade like there is no need for it anymore. Just so you know, in case you did not, deep water drilling is a very expensive task.

I would not be surprised to see DO & RIG continue to knife to unthinkable levels. You see, it makes no sense to drill wells when you can order it overseas on the cheap– by doing this you also eliminate the risk of drilling an empty well. Project cancellations will be similar to hedge fund redemptions, everyone wants out.

Note: There is one oil stock I’m considering buying here, UPL.

Fly tried to tell you guys oil was fixing to rollover, after it already rolled over. Most didn’t believe, I mean oil had to bounce, right? Wrong.

Right now if you are short anything oil, you are experiencing bountiful gains, I happen to be short PTR and couldn’t be happier. I was short XOM, but covered on Friday for a minimal gain, my bad.

The service names are getting destroyed, it all started with GW this morning.

I hate to see this happen, pretty much my whole family works for some sort of oil company, but it is what it is. Thanks heavens I escaped the DXO trap, what a disaster.

Soon, oil will be a buy of a lifetime, just not yet.

Charts:

• Oil & Gas Equipment & Services
• Oil & Gas Drilling & Exploration

Note: It looks like Veritas will win the iBC fantasy football league, he needs one point to defeat The Cajun and he has Donald Driver playing tonight. Somebody put a hit out on Driver, please.

Ragin’ Cajun Vs. Veritas5

I did.

I just received my copy of ‘Technical Analysis using multiple timeframes‘ by Brian Shannon. It’s a book I have been waiting to read, but put off buying for whatever reason. Go get it now.

I’m only through the first couple of pages, but it has already exceeded my expectations. When I’m finished, I will give a full review. But, for those intersested in Technical Analysis, it’s a must own.

The author, Brian Shannon, has also let me know that he will be sending a book to the winner of the MadStocks contest for 2008, (looks like it will be Market Monk).

Note: If you have not yet picked your stock of the year for 2009, it’s not too late. The deadline is 12/31/08, and remember the stock must be over $10, and no duplicate picks. Here’s the link to enter the contest.

I sold short PTR @ 89.89 with a stop at 95.25. See Chart

Note: I also cashed out ALL of my longs this morning, as I stated I would do earlier in the week. I will be taking Fly’s advice and starting fresh for the new year. The only positions I have on at the moment are FAZ and short PTR.

First, let me gives props to The Fly, as he nailed XOM short. I happened to have followed him on his trade, (which I do all the time), and would like to thank him for the extra coin.

A bunch of oil names look ready to fall into the abyss. Feel free to comment with your picks.

PTR: PetroChina Company Limited

USO broke $33 today:

However, Woody’s RSI(2) is showing a buy signal in oil: