As ugly as OIH is here, once the daily range is less than the day before it will be a buy signal for me. I want to buy this when it is oversold, but losing downside momentum. Yesterday's range was a wide-range breakdown, so I will wait until the end of today and see about getting back in then if the high-low range is less than yesterday.
Long from Friday's close. One more dip possible. OIH is lagging the SPY and Nasdaq in a big way here. This could set up a big rally as short sellers are likely still all over this sector. Double upside potential with short covering and fresh buying likely to kick in on a momentum shift back to the upside.
11:13AM Monday, 8/18/2014