Posted by 11 November 2005

Chart Request: Oil Services HOLDRs (OIH)

This one’s for Laurie. I’d say that OIH is broken — at least in the intermediate term.

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Comments

  1. Posted by jeff on November 11, 2005 at 1:24 pm

    Can you elaborate on your comment that the stock can “stay oversold for a while”? Generally speaking, what combination of indicators do you feel can keep a stock suppressed at technically oversold levels, and for how long? TIA.

  2. Posted by Michael on November 11, 2005 at 1:36 pm

    Jeff,

    Just an observation about oscillators. They’re more useful in range-bound markets than in trending ones. So if OIH is trending down strongly it can stay oversold for a while. Of course I have no idea if it will stay oversold, I’m just pointing out that the oscillator in and of itself isn’t enough to get bullish on it.

    Check out how stochastic is calculated. It’s nothing but price and time so those are the things that can keep stochatic in oversold territory.

    Also, the article in this post about stochastic may be of interest to you.

  3. Posted by Will Turinske on November 11, 2005 at 2:05 pm

    Mike,

    Have you ever considered running a hedge fund? If so/not, why?

    I’ve been running a small fund and am considering trading for others in a hedge fund-like way.

    Any knowledge that you may have and are willing to share would be much appreciated.

  4. Posted by Michael on November 11, 2005 at 2:18 pm

    Will,

    I’ve never thought about running a hedge fund although I have considered a small fund of friend & family money. I was considering the fund back in the bubble days. The only thing that stopped me back then was that I knew I was too green. Those thoughts went away with the bubble. :-)

    I know I’m not experienced enough to run a hedge fund since I’ve never traded options nor dealt with huge sums of money. Maybe some day…