Stock Market Analysis – 07-13-2010
When does a bounce become a reversal? After you break the previous high. The last downward move was so sharp that despite the run up, we haven’t gotten over the previous mark set at $1130 yet. If you played the bounce and are long on things like BP now, you may want to take some profits or start setting trailing stops. I still like the bearish setups that are presenting themselves now, so keep screening for them. And if you’re on the sidelines, keep an eye on your favorite bullish candidates in case there’s a full rebound confirmation.
BP Amoco (BP) – 06-30-2010
BP has been getting absolutely destroyed in the wake of their gulf coast disaster. I wouldn’t try to buy it now, but thinking ahead, if the market decides $1150 really was support this could be interesting given its strength on a bad day. Most likely the play would be if it gets over $32.50 or something in conjunction with that marketwide bounce.