30th October 2013 — Banking BP

At the end of August my MIDAS system gave a very clear read on BP. It said to buy.

And so buy I did.

I managed to open at 441p and today sold out at 485p for a fantastic, leveraged, tax free profit!

I saw Zak’s video this morning suggesting there was more upside to come for BP, but in my position I was happy to bank the profit. From a MIDAS perspective, what’s just happened with BP is a fairly common occurrence; a beleaguered stock in a bull market pulls back to long term primary support and then spends a couple of months consolidating at that level. During this time management becomes increasingly exasperated with the stock’s performance (after all those bonuses aren’t given out for languishing share prices!) and surprises the market with a positive corporate action. Usually this comes in the form of a share buyback or, as in the case of BP, a surprise dividend.

 

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