Oil Drillers Are On the Downside

Oil drillers like Diamond Offshore Drilling (DO), Ensco International (ESV), Globalsantafe (GSF), Nabors Industries (NBR), Noble (NE), Rowan Companies (RDC) and Transocean (RIG) are on the price downside.

Most of these cyclical stocks peaked in April and May of 2006 after a two to three-year upside. Do not buy these stocks until a new upside is established.

The Philadelphia Oil Service Sector Index (^OSX), which consists of 15 oil service stocks, is also on the downside.

Posted September 1, 2006.