RIG - sinking...into an Oceanic trench.

Transocean (RIG), suffered significantly today for two reasons. First, the main equity market was down over 1%, but also Oil prices were smashed over 3% lower.


RIG, daily

Summary

First target is 38.25 - the December'2011 low...then 35. If a 3-6 month period of deflation occurs this year - with the sp'500 at least down to 1100..then I believe RIG will not only hit 35..but probably collapse to around $25.

At that price..it sure will be a tempting buy. Today's 5% break lower is a clear warning,.and is probably just the re-start of a down wave that started at $59 in early March.