Do you know that Today is the 22nd straight session the S&P 500 Index hasn't had consecutive up days? – the longest streak since October 2008, which wasn't a good time to be long the market. I still insist that market should be long only after extreme capitulation, it doesn't matter short, medium or long term.
I mention in the last few days, my entry point for this correction is simple, I want to see some extreme fear, capitulation in this market, S&P 500 testing about 990 which is the 80 weeks moving average and bounce off. This is my personal view for the best scenario if you want to long. Since the market fail the 200 days moving average last Friday, if the second attempt break out and surpass the 200 moving average. The chance is high for the market to sail higher. However, if it fail again, there is a chance to test the previous low 1040 again, and there is also a head and shoulder neckline around 1060. If both of these support fail, we'll sit tight and get ready to push the buy button.
Failure to stop an oil leak from spewing millions of gallons of crude into the Gulf of Mexico may leave the biggest oil and gas producer in the U.S. in a fight to stay independent. BP shares have plunged 36 percent since the Deepwater Horizon drilling rig leased by the company exploded on April 20, wiping more than 40 billion pounds ($58 billion) from the company’s value. That may make BP cheap enough to attract acquisition interest. I feel bad for the long term investor. This is another good lesson not to hold a single stock for your portfolio even though it is a super strong stock in the sector and market. Even an elephant will stumble one day. I don't see any reason and hope for holding BP right now or near future. Remember "don't fall in love with your stock?'
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