9/12/08

About energy stocks

This is an excerpt from Birinyi Associates, Inc. blog (http://www.tickersense.typepad.com.

This morning before the open Birinyi Associates issued a research report on the energy sector and several reasons for today's rally.

1) After yesterday's decline most energy stocks were the most oversold they have been in the last 18 months. Several of these stocks have reached such levels in the current decline, but a mass sell-off in a sector to extreme lows is usually a good indication of a bounce.

2) The average bear market for the energy sector is about -31%, the current decline was about -28%.

My view.

I found these comments interesting, probably because I agree with them. The energy sector is not dead as most observers seem to believe.

More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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