stockstradr,
While you are correct that the oil service stocks have taken a nasty tumble since Oct 07, I would rather attribute this short success to the overall market bloodbath rather than special insights from the “pros”. Afterall, there are also a lot of people patting themselves on the back for their shorts on Google, banks, gold miners, and just about anything else.
As you pointed out, crude itself can still be a good short trade as it is now only $8 off its $100 high (which is what the original question was all about). Incidentally, USO is also currently about 8% off its high.
I also suspect that when the stock mkt recovers, the oil service stocks will rise even if crude itself takes a dip. So, I’m really not sure how much of a correlation oil service stocks will have with crude oil.
My personal opinion: oil will be volatile for a long long time. If ever crude falls to $70, I’m buying USO with both hands.
