Plains EXPL and Production (NYSE:PXP)Q: Saw where you wrote PXP hit an alert June 22.2009 for a bearish price action. Since then the price has moved up slightly and then hit was I see as resistance at about 24.50.My question is with your algorithms what is the time frame you would play on that analysis? In my strategy I play about 1-2 weeks, buying puts/calls. Would love to talk with you about your services.
A: I will have one of our SmarTrend product specialists give you a call soon. In the meantime, I thought I would go over our thoughts on PXP. You are correct that a few days after our Downtrend call, the stock came back a bit. This happens from time to time and it’s a topic we recently covered on our community site which you can find on www.mysmartrend.com/discussion.asp. The reverse actually happened when we called PXP in an Uptrend back on April 17th – it fell for a few days and then resumed upward. As for our more recent trend call, it looks as though it bounced near 50-day average support back on 6/23 but then petered out around the 10-day average as the whole market started to show signs of fatigue. PXP looks headed for a test of its 200-day moving average right around $22.87. Clearly it is trading in sympathy with oil and nat gas in the near term. But we will be keeping a close eye on PXP and how its trading vs. underlying commodities. Lastly, not sure if you get our Morning Call yet, but it’s a free newsletter we publish each day and goes over technical analysis on the broader market as well as a pretty thorough briefing of corporate events and economic data.