BP

The fact that so many EXPECT a rally is not good. I would be a buyer of BP IF there was a lot of gloom and doom around. But there isn't. This suggests to me heavy falls to come. 550p might offer some support but I reckon BP will test the 500p level sometime in 2007. The fact is, any weakness in the mkt (like today albeit on low vol) and BP is first down. The mkts look high and any weakness and BP will start to really fall. The mkt is rerating the oil majors on a suspicion that oil price will fall sharply in a recession and the dollar will fall to around 2.15 to the £ - very bad news for BP.