OIS (Oil States International)

Jan 19, 2007

The year started off with a sharp drop in oil prices and consequential weakness in energy stocks. OIS fit the profile as the company provides products and services to drillers. The stock started the year by tradign down sharply through the 50 day average. This is after a broad top formed in the first part of last year, a weakening price pattern and then a brief rally into the end of the year. This pattern has likely shaken out the initial short sellers in the name and pulled in some long investors. The drop will likely now spark some fear and I anticipate a steady liquidation for a good bit of time. I shorted 8,000 shares the first of the year as noted on the weekly chart to the right and I have made a quick gain at least initially.

Feb 16, 2007

The stock has been acting well as I was able to see a quick gain in my position and then on lighter volume, the stock began to climb back up. It found resistance around 30 where the 50 day average is coming down to meet the stock and so I took the opportunity to add another 4,000 shares. I will conitnue to monitor both the macro environment as well as individual stock issues that will drive the price.

Thanks for visiting my sponsors