Does Anyone Want Oil Anymore?

Admittedly the stuff is stinky, sticky, and ugly but Oil powers the economy and the price of oil has a direct impact to many stocks that explore, refine, or transport the black gold. As I type the price of oil is approaching $55 per barrel and the price of unleaded is now near the $2 level throughout the US.

When you look at the Oil Service Holders (OIH) as a proxy for Oil service companies, the ETF is currently down about 65% from the highs and is currently sitting on the 10 year trend line.

There are some that say we have found support in the price of oil and the oil service companies and we may have found a bottom.

There are others that say we still have plenty of downside left from here.

So what would you do? You could be a buyer of Oil stocks or ETF's like OIH and DIG here. You could short Oil stocks or buy inverse ETFs like DUG here. Or you can just wait and look for another opportunity.

Please write your comments below.

by Mark Anderson |  11/17/08  |  Stocks: DIG, DUG, OIH,