Monday, July 12, 2010

Halliburton and the Gulf Oil Spill Effects

Halliburton Shirt
Opportunity from Disaster? Hopefully This Won't Be the Norm

Want to buy the shirt off my back? It's for sale somewhat cheap right now, and could get cheaper. It’s the summer doldrums in the markets it seems right now with the on average light volume. The wall street pros that still have their jobs might be taking the summer off, and or waiting for what the market is going to do now to initiate any new positions in the markets. This week Halliburton and Baker Hughes popped up on my technical radar screens as some nice low-risk high-reward short to intermediate term short sell swing trades. Long term they are good companies well positioned in the oil field services market and would be nice to buy into at lower prices.

USA Market Indices Outlook for This Week

First I want to share with you where I think the US Stock market indices are heading this week. I currently see major resistance on the Dow Jones Industrials at 10,112.37 to 10,406.96, the S&P500 at 1,071.29 to 1,105.50, and the Nasdaq at 2,201.55 to 2,281.26. I see current index prices hitting strong resistance now or possibly moving up to these upper price levels, whether it’s real buying and or short-covering.

Up Volume Light Down Volume Strong

Lately, on balance the volume in the markets has been pretty light on the up moves, then hit by stronger volume on the down moves. These major resistance price levels above now would be a good spot to sell short for a continuation what looks to me as a downtrend for another round low-risk high-reward selling and lower stock prices. The markets are trading on fear now about the future, and some of the low valuations don’t seem to matter for now. It’s more about the idea of things getting much worse that’s price into the markets right now it seems.

Sell Equities Short, Buy A Little Gold, Trade Currencies

I would like to be upbeat on the equity markets, but I don’t see it yet. Not even for high paying dividend stocks yet. The best investments and or trades I see currently is to selectively sell short equities, buy a little gold, silver for the long-term, and or trade currencies commodity futures short term, and what I highly suggest, to build a business of any kind of any size to contribute to your countries much needed gross domestic product. The GDP idea goes for everyone around the world now. Help create GDP and we help keeping the global economy from heading in to deeper recession and or depression.

My Stock Pick This Week Is Short Sell On Halliburton

Halliburton is a great company but not without its past controversies of its own and now involved with BP, and Anadarko on the Gulf oil spill as Halliburton was the company doing the deepwater oil well work when the blowout happened. Regardless of what and who is to blame, this has helped caused Halliburton and BP to sell off big. I see the selloff at least for Halliburton and I’ll throw in Baker Hughes too continuing for a little longer. If I’m wrong, implement the stop loss target and move on to another long or short stock idea. I see oil and energy prices heading a little lower short-term with the big question mark of global gross domestic product in the spotlight now with slowing economies around the world. If this idea works, we can easily see lower prices on Halliburton even if they are saying the leak has been fixed. There is the collateral damage that will then be addressed, and who pays what and how much for the disaster.

Sell Short Halliburton - Ticker HAL

Sell Entry: 28.00 to 31.56

Stop-Loss: 32.00 or 8% plus from your entry price.

Take Profit Areas: 20.21 to 18.91, 14.57 to 13.64, 7.59 to 7.09

Halliburton Company Profile

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment provides production enhancement services, completion tools and services, and cementing services. Its production enhancement services include stimulation, pipeline process, sand control, and well intervention services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; and cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and well construction solutions that enable customers to model, measure, and optimize their well placement and reservoir evaluation activities. Its services include fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and consulting and data management services. The company serves national, integrated, and independent oil and gas companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

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Halliburton Stock Chart