Despite the main market remaining strong, there remains broad weakness in energy stocks. The oil/gas drillers of Transocean (RIG) and Sea Drill (SDRL) settled lower by -1.3% and -2.9% respectively. Mid term outlook is bearish into spring 2015.
Suffice to say, considering the broader equity market, the energy sector remains very weak.... but then... Oil itself continues a multi-month down wave.
If Oil $66/60 in early 2015, then the oil/gas drillers will continue to decline.
Most bearish downside targets...
SDRL 12/10.. although the latter would likely require some degree of major downward revision for 2015 profits.
I am long term bullish on both companies, but until Oil levels out, there seems no point in getting involved on the long side.