The brave traders who rode BP's bounce from 40 to 45 in the past two days are staying on board, for the most part. BP hit a high of 45.57 today, closed at 45.38 and is at 44.66 after hours.
By tomorrow, British Petroleum is expected to announce whether its "top hat" method is a solution. BP traded 55.9 million shares today (so far). All in all, between the environmental disaster, absurdly incredible technological feats and failure(s) and bottoming of its stock, it's clear that all the pressure BP put on RIG to rush the Deepwater Horizon project (re: 60 Minutes) had everything to do with profits, losses and temporary insanity.
After all, an average Joe like me wouldn't and hasn't traded/invested in BP. Ever. I'd rather buy gold (GLD) or AAPL. Even SCO, an inverse crude oil ETN, has outperformed oil stocks lately. But BP is compelling, the Darth Vader of stocks today. I'd never say never when it comes to profiting from trades. But one question remains: If top hat is successful, even for just the short term, where do BP shares go from here? What's the next catalyst?
Perception is almost everything today. As long as blood spills out of Planet Earth — oil bleeding at the bottom of the Gulf — the video footage will pour wrath upon British Petroleum on a daily basis. My guess is BP tops out tomorrow and trends down again starting next week.
American Bulls, a candlestick charting site, called BP a buy today.
6-month chart (daily)
White Spinning Top pattern (bullish)
BP vs. SCO vs. GLD
3-month chart (daily)
BP vs. AAPL
1-year chart (weekly)
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