Short it ? 1. Overall market environment is poor and bearish 2. New 10 year low by BP today ("upside down" breakout) 3. Huge volume over last few days to accompany price action 4. Bad news on TV, everybody hates them right now 5. No good news apparent for some time to come 6. Bankruptcy, etc rumors Short it ?
I know I am late to the party. My answer is not really "yes," but "sorta." BP may not fall substantially from here, and while it might experience a few nauseating short-covering spikes here and there, it certainly is not going to be making any huge gains. In the past I have made it a practice not to short any company with positive earnings. The last time I strongly considered shorting a company with earnings was Bear Stearns. Talked myself out of it: "what-- are u crazy, u can't short one of the biggest investment houses in the world" was the self-talk going through my head at the time. I am still kicking myself over missing the boat on that one. So I am thinking of the chicken shit route for BP: a bear spread that's ITM or ATM. If it works, I'll put in a lower one, and so forth. Maybe with a 20% mental stop.
Bought 1000 @ 33 for a long term hold, but not feeling too good about it so I'll give it a few days and re-assess. Some of my long term holds in the past were WaMu, Wachovia, AIG, and Pilgrim's Pride. Stosh