This is a second try on OIH's component short. The first was for SLB yesterday. I looked into the companies of OIH more and find that Nabors Industries Ltd (NBR) looks even better for a short.
SLB closed at 50.99, the price where I got stopped out. It gapped up this morning and touched \$52.45. However, OIH, SLB, and NBR is failing to reach higher throughout the day even though the market inched higher.
Looking at the intraday move, this break above 900 on the S&P500 is definitely lacking enthusiasm. Furthermore, Goldman Sachs (GS) gapped higher but backed down and stayed low in the morning. Seeing that the "expected" profitable Q2 was the pumping story this morning, weakness in GS is a good tell of the overall sentiment of the market, i.e. not wanting to move up.
Anyway, I spent a good hour watching the market this morning at lunch. So to keep myself off the screen, I decided to place a short stop entry and let the price decide my move.
I placed my stops at 12:16 for \$15.17 and my entry was triggered at 12:20.
Short entry: \$15.17
Exit stop: \$15.80, top of a gap from 2 weeks ago. Figure 1.
Target: \$10, bottom of previous trading range in beginning of year, Figure 2.
Reward / Risk = 5.17 / 0.63 = 8.2
[caption id="attachment_1587" align="aligncenter" width="500" caption="Nabors Industries Ltd."][/caption]
[caption id="attachment_1588" align="aligncenter" width="500" caption="Nabors Industries Ltd."][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-14-nbr.png : http://traderpau.files.wordpress.com/2009/07/2009-07-14-nbr_prop.png