Bookkeeping: Closing Diamond Offshore Drilling (DO)

I don't know what is wrong with the oil services sector but as I mentioned yesterday in the "solar and dry bulk shippper" piece, every 'growthy' type of sector had now experienced a rally these past 2 months except for the oil services.  Not just drillers, but the whole ecosystem has done very little.  Even when oil was jumping we saw big moves in the E&P names, but not services.... I don't get it.

After buying Diamond Offshore (DO) at the beginning of the month on what I thought was finally a breakout, the stock had done nothing, while the market was up 9 out of 10 sessions.  Then this morning, some analyst decided to downgrade the stock... while analysts are busy elsewhere upgrading stocks that have run up 50% in 7 weeks.  Thanks BMO Capital.

Either way, the stock was not performing before today's call and seemed prone to break support if the market sold off.... so I was wary.  But with the analyst kicking it off the cliff, it hasn't helped. Since I've added some other names on the long side this week, I am going to get out of DO for a 5% loss and wait for another period when this group gets some love.  As an aside, the other stocks in the sector have had the exact same experience the past few weeks... all quite pitiful.

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