Opposite Day

For the past few weeks the banks led by Bank of America have been hindering the markets attempt to break out of the range. Today, when the bears tried to make their move, Bank of America has led the troops back. 

I was actually hoping that Bank of America would go lower this week. The Credit Suisse research I referred to earlier lists Bank of America as a bounce candidate as it is trading close to a 52 week low heading into mutual fund year end. The stock is so oversold that when it finally bounces it should be hard. This would be a small position as it would be a pure trade.

5 comments:

Anonymous said...

AXP-

I'm thinking this could go back to $44 by years end? Thoughts?

Anonymous said...

P.S.-

I also like F and VZ

Anonymous said...

It does seem as if congress, the Fed, and the Treasury Department are determined to protect the banks even if it means letting them use the Constitution as toilet paper. But the banks are both crooked and insolvent, and it is not just mobs of citizens with pitchforks who are after them. Powerful entities like Blackrock and Pimco are also pursuing rescission.

Tsachy Mishal said...

BAC would be a pure trade for a bounce. No fundamentals.
AXP is the best of the worst (financials). Reasonable valuatiuon.

I prefer VOD to VZ as they own 40% of VZ's crown jewel, Verizon Wireless, anyway and you get it at a better valuation.

I don't like Ford. I think their pension liabilities and unions will weigh on them. I prefer TM in autos.

Anonymous said...

thanks for the feedback.