CHK, RIG - energy stocks under pressure

Despite the main equity market seeing only minor weak chop, there was renewed significant weakness in the energy sector. Chesapeake Energy (CHK) and Transocean (RIG), settled lower by -3.7% and -5.6% respectively. Outlook is bearish into early 2015.


CHK, daily

RIG, daily

Summary

Suffice to say... both stocks are being pressured by a strong USD, but even more so, by weak energy prices. With Oil back under the $80 threshold, the energy stocks are going to remain very weak, even if the broader market can hold the recent gains.
-

*I remain a fan of both stocks across the longer term, but if Oil slips to the low $70s (or even 60s) - which seems highly probable, then both are vulnerable to a further 25/35% lower across the next few months.