That was an excellent rally yesterday! The S&P 500 broke through important resistance at 1085. For more insight, I will turn to my trusted sidekick, technical analyst for TradeMaster Daily Stock Alerts Jason Cimpl…
After the weakness on Tuesday, I was beginning to doubt the bulls ability to take the market higher. The group came through yesterday and took back 1085, which needs to become support. Volume was low again, but internals were commendable as buyers out numbered the sellers by 5 to 1. Today the big resistance to watch will be 1103 and 1115. SPX 1103 stopped the market dead in its tracks last week. Stronger lateral resistance exists at 1115 which dates back to December 2009 and is also the 20 DMA and gap resistance.
The call is to remain bullish. Once again, the market put in a major top this April and declines are expected over the summer, but the bulls have momentum right now. If the SPX can take out 1103, we may add to our long positions. I mentioned yesterday that the market cannot continue higher unless it finds a leader. Yesterday, the financials led the market higher, but I do not see that group as a leader. Energy stocks also outperformed yesterday, but that sector was rebounding from oversold conditions. At this point, I would prefer to see industrials or technology pick up the pace and separate from the herd.
Over the last few days, Jason and his TradeMaster readers have closed a couple positions with quick 13% and 7% gains. But the big one is coming soon.
SonicWALL is hitting $11.30 today after a blowout earnings report. TradeMaster Daily Stock Alerts members are up nearly 30% in 7 trading sessions!
Congratulations, Jason. You are making your readers very happy.
Jason has been consistently leading his readers to profits all year. And his service, TradeMaster Daily Stock Alerts, has the lowest cancellation rates I’ve ever seen. His readers simply don’t leave. If you’d like to discover what’s making hundreds of investors so happy, CLICK HERE.
It seems like I should include rants in Daily Profit more often. Even though I didn’t go completely off the deep end yesterday, Daily Profit readers still responded with a flurry of thoughtful comments. I am continually impressed with your thoughts and comments and I hope you will continue to send them.
Now, I’d like to print a few of your responses…
Phillip E. observed: Please tell Ian that featuring BP in his rant on a “disturbing trend of negligence and deceit in corporate
BP (despite other recent commentary in the press) stands for British Petroleum!!!!!!
Good eye, Philip. I still think the message applies, but still, the point is well-taken. And I might add that it’s not uncommon for small incidental facts to get overlooked in the midst of a good rant! Thanks for noticing.
John S. wrote to say:
I have spent the last 40 years working in the Petroleum Industry. I believe that this article about crude oil building a sturdy floor is so spot on.
A good portion of my career has been spent working in and around
Just some simple thoughts. Thank you.
It would be unfortunate if BP workers who had nothing to do with the
I would also suggest that these observations are also part of what will make BP a takeover candidate. Of course, some current BP workers will lose their jobs in a takeover, too.
As for the safety issue, I can see the loss of manpower affecting safety, but at least in offshore situations, BP’s safety measures are going to be under the microscope. It’s reasonable to assume that BP might just scale back operations where safety is critical. That too, will help make the company a takeover target. And this editor will be keeping a close eye if situations like this present themselves.
Sidney Y. wrote:
As you know I own shares of [Bakken oil stock from Energy World Profits] which I bought in the low $3 range and have added to my position several times. I’m not convinced this is an $8 stock but I do believe it won’t take much to become a $5 stock and maybe $6 in the next 12 months.
I also believe that the current share price of BP is a tremendous opportunity to buy a world-class company at a ridiculous price. I bought more today.
The notion that not owning stock in BP somehow makes a statement in support of "doing the right thing" is absolutely absurd. I know you agree.
Thanks for bringing light to a dark subject.
Thanks, Sid. And nice pun, too. Groan.
My price target for this Bakken oil stock assumes a higher oil price and a higher premium for land-based oil producers. As you know, I believe that moratoriums on new
And there’s a cost advantage, too. The Bakken stock I just recommended to Energy World Profits readers has a cost of $14 a barrel! It’s simply impossible to drill in deep water for that cost. Profit margins should be exceptional for Bakken drillers.
And by the way, I have a confession to make. I nibbled on a few BP (NYSE:BP) shares for my personal account yesterday.
And finally, Scott C. offered some literary criticism of Ayn Rand:
You misunderstand Ayn Rand. She did not conflate selfishness and regulation of behavior. She held that it is right and proper that a person, in order to live as a fully human being, be left alone to use his mind with complete freedom to make his way in the world. This means that he must not sacrifice himself to others, nor accept others’ sacrifices to him, and that the initiation of force be banished from all transactions. She included the corporate thuggery you imply – fraud, deceit, etc. – as forms of force, and held that the proper venue for their resolution was the justice system. To wish to discard these principles in favor of greater regulation (and properly: of any regulation at all), apparently because "a certain percentage" doesn’t behave the way you wish, or perhaps because you don’t trust the courts to dispense justice, is to commit a greater offense than anything the BP’s of the world are capable. I respectfully suggest you re-read Ayn Rand.
Thanks for the thoughtful reply, Scott. I readily admit that