Friday, November 13, 2009
Pride Int'l (PDE) On The Radar Screen For ITZ PIX
Pride Int'l (PDE) has entered the Itz Pix Radar Screen. Note the similarities to June/July chart patterns, I'm targeting $30/$31 as a suggested entry level. The drillers (Transocean RIG another Itz Pix holding) have a 93% correlation to crude oil ($WTIC). It is another pure play on a lower dollar. I'm looking for a brief near term rally in the dollar and for oil to fallback to $74 support. In conjunction I see gold putting in a retracement also to $1075. So, look for PDE as well as RIG to pullback here and give you another opportunity to get in. I continue to see gold trend higher and oil (a laggard to gold) to follow the trend higher as the US Dollar ($USD) heads lower on a longer term basis. In the CNBC Video, Tom Petrie, Banc of America Securities Merrill Lynch vice chairman echoes my outlook for oil.
*click chart to expand image