Energy stocks are rebounding strongly just as I expected yesterday. The market may rally for a couple days but I do not expect it to exceed my range (1000-1100 for S&P500).
British Government is going to get involved in BP dealing with U.S. government soon as I predicted a week ago. The market is also bringing the liability number to 40 billion as I predicted 3 weeks ago. I do not expect BP to go bankrupt. It will pay out the damage through future cash flow. The stock will be depressed for long time but there maybe opportunity in its bond. Wait until the bond to be traded under 50 cents on the dollar.
No comments:
Post a Comment