Going Long On BP Stock Now Puts Dumb And Dumber To Shame
A viewer emails in to find out if I would give an update on BP. In the previous month I had a enthusiast email in who sought to go long BP at 40. I said no way. At the moment the stock trades at $35. I wish he followed my advise.
Pondering this from a fundamental perspective BP is no longer a a buy and has not been one for several months now. Oil is an extremely harmful material. You are no longer even allowed to throw oil on your property or to even throw it in a trash can. You have to take old oil to a special certified hazardous waste collection place to dispose of it. Oil causes cancer. Oil has caused mutations in insects and plants. Oil is so toxic that it causes skin rashes and can harm the lungs just as a result of sucking in air.
There are going to be lawsuits against BP for the coming 30 years. Many people are going to win millions of dollars in compensation against BP. Even the EPA is thought to be ready to go on a maximum fine against BP of $8,000 per barrel of oil leaked into the Gulf Of Mexico.
We possibly will see BP split itself into a new corporation and permit the BP as we now understand it, to smash into and blaze under the monetary obligations they will have for the next 25 years. I am sure a plan is in the works by the execs of BP to get together to make a new oil company that will be immune and sheltered from any lawsuits and fines related to the Gulf Of Mexico oil spill. They have most likely already considered such a realignment.
This is barely just beginning. I expect BP to have to pay hundreds of billions of dollars worth of damages.
From a technical analysis standpoint, BP has had nothing more than a strong spring up within a larger downtrend. Anyone needs only to look at the monthly stock chart to appreciate just how weak this most recent upward move in BP stock has been.
Approach BP like you would dating. Are you that despairing for a long play that you have to look at BP? You propose to tell me that you can't find any better looking uptrending stocks in uptrending sectors to purchase? You need to obtain a superior stock screener if you just answered yes to that.
I know. We just can't seem to get over our own self-image.
Everybody likes the concept that they made a ton of money out of the BP disaster by going long BP when everyone else was still hating BP. Right? You, like Chuck Norris, were the single guy who had the valor and the acumen to go long BP when everybody else was running in terror. You and you alone saw the chance that in actual fact existed when BP sold off. You were the only gentleman in the room that was intelligent enough and that truly understood the stock market good enough to buy BP right now.
Nearly all haughty SOBs wash out of the market in under 5 years. Do not be conceited. The stock market is not the place to articulate your uniqueness or to try and prove that you are better than everybody else. That is a great way to lose all your money. The only motive to trade in the stock market is to make money. Whatever else than that is folly.
In this episode I give you my opinion on BP and anyone who thinks this stock is a good buy right now.
Article Source: FxTradingStock.com
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GuerillaStockTrading is a stock market blog that gives technical analysis opinions and business news that stock traders can not find anywhere else. Each week, our jaw dropping headlines and lessons bring one of a kind value to thousands of stock traders around the world. Take pleasure in articles such as stochastic oscillator
by: Daniel Huckabee
Total views: 31
Word Count: 625
Date: Tue, 20 Jul 2010
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