BP. looks a good play!

Morning all.

Ref BP. , I think that you need to be careful with this one.
It's tried to break out of the trading range but is currently
at 487p. It has fallen back into the range so this could
be looked upon as a failed breakout.

I was listening to Bloomberg last night, and apparently George
Soros, who is nobody's fool, has been getting out of oil stocks,
including BP, in his major hedge fund.
An oil trader, who has been trading oil for over 30 Years, was
also saying that this bounce in oil prices was starting to look
like it was coming to the end of the move. He had lived and traded
through these kind of moves for decades, so he isn't exactly a
beginner. :-)

No idea where it will all end, TomH. is looking for $57.
We'll see with hindsight.

Melnibone.

Woe betide I go against what the professionals say! So what position would you take and how would you trade it Melnibone?

PS I was thinking long at 475 ish...

I would see what happened if it got back to the bottom of the range,
circa 478p.
If that fails, there's no support until it hits 450p which is the
top of the old 400/450p range. General market direction and the oil
price will decide where it goes, and if I knew what that was going
to be I would either be mega short or long on the Indices.
Trouble is, like everyone else, I don't know. ;-)
So until a clear trend appears, I will carry on scalping, taking
each day as it comes.

Melnibone.

I would tend to look for other oppportunities in the current unknown climate.
Did anybody hear Oystercatcher(CNBC)today,whilst he has been a bear for 2years he is now saying that The FTSE/DAX are going sharply down from this point unless bulls can get the upper hand above 4370ish.

Had a GSK scalp this morning so that'll do me until these
markets decide where they are going.

Unless we get a market moving event, I suspect that stuff will
wait now to see if the S&P moves North or South from 1080.

Melnibone.

I believe that the US oil inventory comes out at 1530, (1030 Eastern),
and given the current correlation between the oil price and the Indices,
this may give some volatility around that time and maybe even some
market direction.

Melnibone.

We got a down spike on the oil inventory data.
Now then, will we get market direction?

Melnibone.

DOW trying to take out 10,000.
NDX has closed the gap down open from just over a week ago,
circa 1355.

Stuff's starting to get interesting. :-)

Melnibone.

Just can't bring myself to go against such a powerful trend on oil. Historically:

Interest rates up = equities down
Oil up = equities down
Massive US debt mountain = $/equities down

When the NDX closed that gap open from a while back that I was
talking about, circa 1355, it collected the Bears that got left behind
and the Bears that were in have now realised their profits.
Since then it's started to drop.

Bulls need to spend some money, IMHO, or the Bears take control
again.

Melnibone.