In my view, oil services is a short. Crude at current levels has caused many firms to cancel drilling projects and rigs are not being leased. In addition, I don't believe some of these rich valuations are justified, given Q1 2009 Earnings coming up. Below is a list of shorts, study up and I will be back tonight with my strategy going into this week.
TOP SHORTS: OII, DRQ, BAS.
BIGGER NAMES TO SHORT: RIG and HAL look weak here.
As for currencies, I will short the Euro or the Pound (or both)
Short Euro: Buy the DRR (double short on Euro)
Short Pound: Short the FXB
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