As you know, I hate Bank of Amerika. This article should outline a few of my reasons: Bank of Amerika
Anyway, while it is generally not a good practice to short a company, due to sheer hate of them, I am making a small exception here. I have been watching for Bank of America Corporation [[BAC]] to show signs of some weakness, so I could start a short position, without shorting it only because I hate them.
Lets look at the chart…
BAC roared off the Fed. induced, SEC manipulated, July bottom, due to a huge short-covering rally. We can see that its advanced has stalled, midway between the 50 and 200 day averages, and just under multi-month resistance.
MACD is getting ready to cross, and RSI2 is in a neutral zone.
Despite the markets roaring ahead the past week or so, you can see BAC has done nothing. With the downtrend still firmly in place, I think BAC revisits the 50 day average, or hopefully worse.
With these things in mind, on Friday, I began buying puts on BAC, near the HOD. I did not bother trying to short it, with all the SEC no-short shenanigans.
I will look to sell my puts on any pause at the 50 day average. A break above 34.00 will have me reconsider this position.
I like this call Woody. With the big day we had on Friday, the financials did not participate like I thought they would.
Just take a look at FNM, ABK, WM, ect.
I want to be super bullish right here, but I can’t.
Cajun, for your style, one with a short time-frame, I wouldn’t worry so much about whether you are bullish or bearish, more than a week or two out. Right now, you have to be bullish. When the momo slows, and the indexes make a lower high/lower low, it will be time to get more bearish, or at the very least, neutral.
Us short-term traders have a distinct advantage over traders with longer term plans. We do not really care whether the market is lower or higher 3 months from now, as we won’t be in the same positions then as we are now. The guys looking to put their 401K money back in, or those who trade on funnymentals have to play the loser’s guessing game, where they try to guess whether July is the bottom, or isn’t, while they risk another 20% flush of their entire amount of capital.
Anyway, that’s a lot of words, to just say that I’m glad you like the call.
Wood,
BAC has tested the 50EMA already, and it held. The consolidation, is correction through time. Thus, we may see price move up when the 50EMA *catches* up.
Now of course, bad news [the future] may negate that analysis entirely.
There is of course the Countrywide acquisition scandal/nonsense to consider.
jog on
duc
Yep, day traders is smart. Pension funds and 401Ks are losers. I’m so glad that there are so many wise guys, day traders, mortgage fraudsters, ready to skim the pension funds and working stiffs at every convenience. You-all add so much productivity to the US eCONome it isn’t even funny. Real salt of the earth types. Everyone should do what you do, then we would all be steenking rich. You are a parasite just like the banks you hate.
Duc, I will profit if BAC tests the 50 day again, within the next couple of weeks.
Honestly though, I’m expecting more bad news. I think that the banks will use overall market strength to give bad news galore, while there are dumb asses to give them a bid.
If I’m wrong, hey, my losses are contained.
Scum,
Try not to be such a dufus, nu? Even the remora that feed off the leavings of sharks serve a purpose in this world.
Liquidity is a Godsend, and without it markets are shit. Thank daytraders and their manic activity for it, and “STFU.”
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Wood– is there a reason you use the commie “k” in denoting “America?”
Even if you hate that bank, it’s very disrespectful.
PS — I hate that bank and it’s lizard too.
_
Jake, I mean no disrespect, to America.
I only mean disrespect to the brand that is Bank of America.
Since they take the name of our country, I find it very disrespectful that they borrow money from me, at a rate that does not reward me for my risk, and then they return me collateral that they know will never be valuable again.
Furthermore, I can not sell the company short.
When I consider that they have not offered my family shares in their taxpayer subsidized company, I think they need to be written Bank of Amerika.
You disrespected our country, in a very Klansman-like manner.
Don’t tell me you didn’t know that?
Fly, do not cross a line. I am not a racist.
What line?
I am referring to the fact that klansmen like to use the letter “k” in all of their words. I am helping you understand why writing “Amerika” can be misconstrued.
You can thank me later.
http://en.wikipedia.org/wiki/Alternative_political_spelling
Actually, it’s the embittered, hardcore, moon-bat freak left that tends to put a “k” in America. It’s some kind of fascist code word.
The shitheads consider it “hep,” in a “Pacifica Networks” kind of way.
I would expect this spelling from the Communist Extinct Reptile only.
_____
Well, I guess I should be embarrassed, not knowing that.
Actually, funny that a Southerner did not know that, but a Northerner did.
I did not mean it like that, at all, in any way.
I meant it in the communist/socialist sort of way. Take America and give it a Russian flair.
And now that I’m reading your wiki entry as I’m writing this comment, I think you’ll understand.
iBankKoin.com
For the record, I am not calling anyone a racist, except “Scum Bucket”.
I am merely pointing out a dumb fact.
Ten bucks says Wood will never write “Bank of Amerika” again.
Any takers?
Wood fuck those two—their acting like a kouple of kunts.
I get it.
Thanks KC. I didn’t think I was THAT krazy.
Go back to sucking on the amerikkkan turd fly.
Teknical analysis.
Haha, man, even I know what a ‘k’ means. Thank you Histoy CH.
Good one mexikan!
Fuccin’ kommies.
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