Brigham Exploration Company

BEXP

Company. "Brigham Exploration Company is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore oil and natural gas provinces in the United States." (company website)

Buy. I bought BEXP last June after a few days of solid price gains on heavier than normal volume. The trend was gathering strength (black ADX line), money was flowing into BEXP (CMF), and the moving averages were rising — should have been a winner.

In a moment of what now looks like madness, I even bought more when the price fell back to the 50-day moving average (completely ignoring falling buying pressure, negative money flow, and declining daily volumes). In my hallucinatory state I obviously thought BEXP would bounce back up from the 50-day average and continue climbing.

Wrong! It fell more and even broke the 200-day moving average. When BEXP recently pulled back up to my original buying price I thought I had dodged the bullet. Wrong again!

Sell. I finally decided to face reality and cut my losses. BEXP is back below the 200-day moving average. The 50-day average has already turned back down, and the 200-day average is about to tip.

Frankly, I just don't understand this one. You'd think with the skyrocketing price of oil this summer, an oil and gas company would have done well, but it's just not working that way.

The market moves in mysterious ways!