My formula for success is rise early, work late, and strike oil.-J. Paul Getty
Cute that British Petroleum (BP) is in the process of changing it’s corporate name to Beyond Petroleum, yes, same symbol. BP has been called on the carpet before for negligence, one violation included miles of rusted pipe that carried a crapload of oil. I don’t know if “crapload” is one word or two. Their “green campaign” looks like another media crapload by the way , because at the end of the day the proof is in the pudding and BS walks. Look, accidents happen, and this is without a doubt a tragedy. I’ve fished the Gulf area for twenty years and have many friends down that way. Many still bleed from Katrina and this just deals the final knock out blow. Sad. I do know that if Bush took this long to react he would have been nail gunned to a cross by the mainstream. I do know that Janet ( I body doubled for Aunt Bee on Mayberry) Napolitano, couldn’t win at poker with a royal flush in her hand, is in way over her head, and I do know the politicization of this tragedy hasn’t even started yet. In case you haven’t figured it out yet, 2010 and the market, is ALL about politics. The Hill has beaten my Chart every time. Tomorrow I’ll show you a very cute story on political spin-doctoring.
Yesterday, there was an erroneous headline that part of the leak had been capped, or resolved, BP exploded, so did OIH and RIG, a name that I trade. About two hours later, a spokesman for BP reported that the report was false and the outflow of oil(about 5,000 barrels a day) had not been curtailed at all. The oil service sector immediately retreated. Point is, this a very sensitive sector right now and will trade on headlines, some factual some not, another reason not to trade news, unless you have a reliable news source (CNBC, I would never be talking about you, you really just suck). The point is, these names have been justifiably or unjustifiably crucified, and when the dust settles and the turn comes, they will be ridiculous buys. The key is to be a player before the turn.
Some of the traders on my site and in the chat room played yesterday’s action masterfully. Come on by and check it out. Have a great day trading.
There are many earnings reports today so be ready.