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Drillers Look Like Shorts

By Jim Cramer

 About this article:
 So it was a head fake. The usual head fake. We simply don't have a strong enough economy to maintain those higher oil prices, and we don't have enough oomph in the economy to own tech. But we don't have any buyers of the consumer stocks either. In short, it is, as Bob Marcin says elsewhere, a really bad day. I think that the Oil Service HOLDRs is the thing to watch here. We have seen a huge move in the likes of Transocean and National-Oilwell Varco. They have been ramping. However, the reason why they have been ramping is that supply has been cut back. That doesn't lend itself to more drilling; it lends its self to less lending. I think these big drilling plays are all shorts. Remember the work that Eric Oberg did for us: The ETFs that are sector-related can be leaned on...

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