Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: A day after gyrating all over the place, shares of Venoco
So what: Yesterday, investors couldn't decide whether to buy after earnings or be depressed that oil was plunging throughout the day. Today, the latter took precedence, as shares slid lower all day long.
Now what: Crude oil tried to rebound today but fell another 2%, so oil companies such as Venoco will have to deal with lower prices for now. Yesterday, I said I would sit out the move on uncertainty regarding where oil is headed, and I feel the same way after today's move. Until oil stops dropping, there's no reason to jump into the stocks of oil producers who will be hit on the bottom line by lower prices.
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