Transocean Ltd. (RIG)

[ogbull]

HERE'S A SHOCKING THOUGHT FOR YOU: Maybe the Saudis are shorting both crude prices and the oil service companies whose share price tracks crude. For example, RIG is 90 million shares short selling at $13.30, a 25 year low. SDRL is also at a serious low with lots of shares sold short. Why would legitimate short players not clear their position at a 25 year low? They won the bet... why not reverse and go long? But it ain't happening. Here's what I see. On one side of the coin, the Saudis and their billionaire friends, keep pumping like fools to run the price down. But before they went all out with production, they sold the entire oil sector short knowing that could force oil prices lower and make a killing when they reversed their short. Under such a scenario, it would very profitable to sell crude at a cheap price if you were playing oil service companies short.

Maybe I'm thinking too much? Anyway, I would recommend that anyone long an oil services company put their shares up for sale at a high price. That way the brokers can't lend the shares out to the shorts. If all the longs did put their shares for sale, we'd catch them in their own trap.

Put your Rig up for sale at $40 so you broker can't loan any shares. Talk it up.