Monday, 2 February 2015

RIG, SDRL - drillers catch a bid... at least for today

With Oil prices seeing some follow through from the Friday gains, the energy stocks were on the rise. Transocean (RIG) and Seadrill (SDRL) settled higher by a very significant 6.0% and 10.1% respectively. However, Oil probably has not floored in the $43s (35/30 seems viable)... today's gains won't likely last.


RIG, daily



SDRL, daily


Summary

Suffice to say... a strong day for all energy related stocks.

Yet... unless you think Oil has somehow put in a key multi-year floor in the $43s.... the energy stocks look set for renewed downside into the spring/summer.

*I have ZERO doubt about long term profitability of RIG and SDRL, but for now... I am not in the least bit interested until Oil has fallen into the mid/low $30s.
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