Oil Blasting Off

Just like That, Oil Moves Up $2.00

By Bryan Bottarelli
Thursday, February 08, 2007 2:45 PM EST
Thu, 8 Feb 2007 19:45:00 GMT

Dear Bottarelli Research Member,

Before taking off for the Money Show, I wanted to send you a quick follow-up on Transocean (RIG – NYSE) and Diamond Offshore Drilling (DO – NYSE), because oil’s sudden $2.00 jump is finally giving the oil servers the jolt that I’ve been looking for.

As I mentioned this morning, DO’s fantastic earnings report was not correctly factored into the stock — but since making that statement — DO has moved $3.00 higher. Just look at this chart:

DO

I find this a significant upside move because RIG should soon be following in DO’s footsteps. You see, DO’s earnings will probably lead to investors to think that RIG will report similar blowout numbers when they report their earnings on February 14th, and this speculation could lead to a strong upside move in RIG. Just compare the DO chart from above with RIG’s chart below, and you’ll see the true potential we have in front of us.

RIG

If RIG can just bust above the $78 level — then the next stop could be a re-test at the recent high of $82.50. So maintain your RIG March 80 Calls (RIG CP) for more upside. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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