BP

Yesterday I mentioned that a few sectors have gotten ahead of themselves. I highlighted LVS and WYNN as runaway stocks that needed to pullback, they did. And AMZN and CME as beaten down stocks that were ready to rebound...they did. To piggyback on that theme, it might be time to look at some more sectors that have moved too far from their mean. Be cautious of course around earnings seasons, implied volatilities, and in general, dealing with any of the 'headline' industries these days: coal, oil, steel, natty, etc. That said, it might be time to start looking at some of these beaten down sectors. Below is an example of one of the integrated's.



Personally, I don't feel real comfortable about making directional bets on oil, for example, but I do feel comfortable making a low-risk directional bet on an integrated oil/gas stock...with a tight stop. For example, BP. Click the chart below to enlarge.