As funds start to do a new trade … buy the winners (Materials), short the losers (financials), in lieu of QE2, banking stocks are on sale. Let’s wait for the 60% off, but if you are in a hurry, now 'its already 50% off (if u still lost, its the fibonacci lines…).
Bank of america is a good stock to look at. I will purchase a large amount at $12.80, any further dips will be bought into. $12.50 is another support level.
From the volume analysis, BAC might still fall a little more. If it doesn’t, then I will just hold my current BAC long.
QE2 is killing financials, and it is inflating the materials market. Alcoa and Freeport mcmoran have increased almost 25% from their lows. The commodities are rising as the greenback fail to inspire safety.
Happy trading. This is just a trade recommendation, let’s not get too excited about this incoming sale. it’s like going to walmart instead of my mortons williams supermarket.
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