Alexander
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Platinum Boarder
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BP accident - could British Petroleum be a BUY? - 2005/03/23 16:44
As traders, we're always on the lookout for market anomalies. Today, there was saddening news from BP (NYSE:BP) as one of their key plants had a large explosion that led to several deaths. However, more interesting than that is how as the news was disseminated, BP fell from around $62/share to a low of $61.71 before trading back up to $62.18. BP has already traded off the past few days and in fact ended the day about $1.50 lower. HOWEVER, news such as this should have set BP even lower -- but it DID NOT. And in fact, it's already trading above the point where the news became wide-spread, and it's relative strength versus the overall market, as shown by TYMORA's CompRS indicator versus the $INDU, also began improving from its earlier lows. For some who say no one really knows how bad it is yet, remember, the market has already factored that in, and apparently does not seem to care. In fact, I wouldn't be surprised if Jim Cramer brings this up on his Mad Money show on CNBC, which I must say does offer some very good words of wisdom and I definitely recommend anyone to check it out for his ideas and perspectives as a former "wild" hedge fund trader always chasing great returns on big money. Any additional thoughts on this, please feel free to chime in!
Alexander
 
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