Bank Of America Corp BAC broke through the 50SMA line on the daily chart. This is a bullish move attributed to the positive economic data.
Credit card default is declining. Charge off at 13.25% from 13.5%
Mortgage modification increased, less risk of default.
Normalized earnings of $2.30 achieved by 2012.
Stock target = $25
Citigroup C rose on revelation that John Paulson and friends have been scooping up more Citigroup shares. This is a bullish move as many industry experts follow Paulson trades after he made a killing in the bear market by shorting financials.
Citigroup target $4.50 by June.
JPMorgan Chase & Co JPM stock remained at $40 as traders look at the Dow Jones Index which is currently at major resistance. A break over 10320 would be a bullish move for JPM. JPM together with other financials will rise in as the recovery road becomes clear. Investors are waiting for a dividend raise which will boost this stock to $50.
Wells Fargo & Company WFC remains one of the Financials industry’s favourite stock. It is Warren Buffet’s baby together with Bank Of America Corp. Wells Fargo has superb management resulting in a stable and profitable bank even during the crisis. WFC is a steal at this price levels. Target is $34 by June. Not as much as Bank Of America Corp, but less risk.
Las Vegas Sands LVS trading in an uncertain manner as traders await the earnings release. Some traders are shorting LVS due to the Sell on the news sentiments.
Watch LVS earnings. Good earnings signal a target of $22.
Singapore casino is a definite booster for LVS as traders await news of Adelson’s comments about the Singapore casino. The other Singapore casino is already open.
Dell will most probably be following Hewlett Packard’s lead as HPQ posted earnings that beat forecast. Dell is undervalued as traders have been keeping the price down due to its poor performance in previous quarters. However, the cyclical renewal of computers will definitely boost Dell’s earnings. Dell target $17 by June.
Alcoa Inc AA is trading in an ascending triangle pattern. A breakout above $13.90 would easily yield a price target of $15.10 for a quick 8% gain. Alcoa target $20 by June. Aluminum price is stabilizing at high levels.
United States Steel X is descending due to profit taking of the materials sector. X may have weak fundamentals, but it is in a strong sector, thus it would naturally rise with the sector. Stay away from this stock. Look for short opportunity when the stock makes new highs. If you are bullish on steel, trade AKS or FCX instead.
Other dragon stocks
MGM MIRAGE MGM
WYNN Resorts WYNN
General Electric GE
Melco Crown Entertainment MPEL
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