Market Can’t Hold Gains; BP Slammed
The market moved again largely in the last hour of trading. At one point the Dow was up triple digits, only to close down 40 points. The Dow attempted to regain the 10k mark (why do we pay such attention to this 10,000 mark?) yet closed well below it. The market feels like it will continue lower in the short term. At what point do I take off my S&P short position? Not yet I don’t think.
On rumors of possible bankruptcy (just rumors at this point), BP took a major hit, dropping 15% today. Transocean (RIG) also took a major hit, losing 8% on the day. Looks like I may have entered RIG a little too early (around $50 per share). I knew going into the position that there was some risk. The company is an excellent company, so it’s just a question of how badly they will get hit by penalties and lawsuits in relation to the Gulf spill.