Meaning:
under normal conditions,
the stock may grind slowly and frustrate bulls.
BUT:
if several variables align simultaneously,
the upside can become:
nonlinear and violent.
That’s the essence of the setup.
What creates the squeeze?
Usually NOT:
one oil spike alone.
The real squeeze happens if market starts believing:
“Offshore capex cycle is actually returning.”
That changes everything psychologically.
Why offshore squeezes can become extreme
Because offshore drillers historically behave:
like deep cyclical call options on oil.
They often:
massively underperform for years,
then:
suddenly explode upward during cycle reversals.
Very nonlinear behavior.
Another important thing
RIG sometimes frontruns oil.
That’s actually meaningful.
Because markets may begin pricing:
future offshore scarcity,
before:
spot oil fully reflects it.
RIG’s upside is NOT:
steady compounding quality.
It is:
convex re-rating optionality.
under normal conditions,
the stock may grind slowly and frustrate bulls.
BUT:
if several variables align simultaneously,
the upside can become:
nonlinear and violent.
That’s the essence of the setup.
What creates the squeeze?
Usually NOT:
one oil spike alone.
The real squeeze happens if market starts believing:
“Offshore capex cycle is actually returning.”
That changes everything psychologically.
Why offshore squeezes can become extreme
Because offshore drillers historically behave:
like deep cyclical call options on oil.
They often:
massively underperform for years,
then:
suddenly explode upward during cycle reversals.
Very nonlinear behavior.
Another important thing
RIG sometimes frontruns oil.
That’s actually meaningful.
Because markets may begin pricing:
future offshore scarcity,
before:
spot oil fully reflects it.
RIG’s upside is NOT:
steady compounding quality.
It is:
convex re-rating optionality.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.