Mariner Energy is up 85.79% for the year while the market is down 6.09%
Traders are selling Mariner Energy (ME) and that may be bullish.
Mariner Energy is a Houston-based oil and gas exploration company. It’s main properties are in the Permian Basin, Gulf Coast, and the Gulf of Mexico deepwater and shelf.
Short interest in the stock has gone through the roof. As of 6/15/10 short interest was over 25 million shares representing 30.20% of the float (the number of shares available for trading by the public).
A high short interest in a stock can actually be bullish. Short sellers have to eventually cover their positions. And they can only do so by buying the stock.
The shares of Mariner have done very well this year. The stock is up 88.89% vs. the S&P 500 index, which is down 3.63%.
Even though the overall trend has been up, the stock is down seven days in a row. It is trading as I write this at 21.57, down from a high of 23.87 just a little over a week ago.
ME may be ready for a bounce. A purchase at 21.57 with a stop loss of 20.39 may be good for a rally to 23.93, a little above the June highs.
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