Archive for the ‘Uncategorized’ Category
Integral Systems (ISYS)
July 15, 2008Hess (HES)
July 15, 2008Here’s another from the Energy Sector – Hess (HES), this one is from the Oil & Gas International Integrated group, which has also been under some selling pressure. Hess illustrates why it’s so risky to make new buys during a market downturn. For several weeks, it appeared to be shaping a flat base, but as oil stocks began weakening, Hess fell out of its formation. Last week brought some heavy downside volume, and this week the stock has moved even further below its 10-week moving average. It’s too soon to say if Hess is in the process of forming a sound base pattern, but it’s an example of how even leading stocks can have downside reversals in a weak and volatile market. Hess also illustrates why it’s unwise to make buy decisions based on fundamentals alone. The earnings and sales growth have been improving, but that’s not enough to overcome a difficult market.
