SLBs numbers were awesome and continue to validate my thesis on this companies' ability to make money. I have been saying all week SLB will report positive numbers and we definitely got them.
Also notice the channel I have had drawn for months. The Volume action to me spells a bottom and HAL and BHI as well as the other service companies could be a good catalyst for a rise to the top of this channel. I have a feeling Oil prices may be a little soft at the start of Monday so use any dip to pick up some SLB , BHI or HAL. I will be picking up some SLB.
The Bad:
The price action AND my strangle. I miscalculated yesterday my break even point by not effectively judging the volatility drop. This moved my expected break even point from 99-100 to about 102. Now if you watched the stock it did not spend much time above 102. I did trim some both times, but the strangle as a whole was not profitable. What was profitable was my core position of Stock. Once I saw that the stock was stuck in a tight trading range at the high 101s I started to liquidate.
The Awesome:
Now we have solid evidence that the Oil Services Sector will stay "Stronger for Longer" which gives me more confidence in the future direction of this company. Though I did not pick up more calls when the market professionals pinned this stock at 100 I will spend next week building a bigger position. Near term weakness in oil should provide some excellent entry points as it did this past week.
BHI Earnings Tuesday, July 22 Before the Bell
HAL Earnings Tuesday Afternoon
BJS Earnings Tuesday Before the Bell
SII July 24 Before the Bell
Happy Investing,
RE
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