Looking at the Purple FIB lines, $12.5 seems to be the target for shorts.
That $12.51 level would allow BAC to fill up the gap.
How would BAC be able to drop that much? Poor earnings (5% drop). We already know their earnings will not be good from the trading results. And BAC has super high relative weakness compared to the S&P. It has lagged the S&P by about 10% since September 1.
The QE2 will definitely hurt BAC on its core business. However, its trading desk might actually improve alot more.
BAC is a value buy at $12.51 definitely. It may be a buy at even these levels. But looking at the overbought index, it may weigh alot on BAC when the index corrects.
Buying BAC at $12.51 at ultra high quantity.
Buying BAC at $12.8 as that is another FIB channel.
Still long BAC here.
Happy investing.
1 comment:
12.18 in my foggy cristal ball......jmho. This market has got to correct and it's going to be ugly. Right now earnings season is the only thing holding it up imho
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