Stocks are rallying again! As expected, tepper traders are taking all stocks up.
Buying volume seems to be really strong. It seems that the BULLS are trying to shrug off the CHINESE inflation. We have heard some bulls saying that the chinese interest rates will not affect the economy.
Nevertheless, stocks are really strong again today. Should we be selling into this rally? That’s the million or thousand dollar question.
I am watching 1175 on the S&P, if stocks falter at that point, its time to sell that rally.
I just bought some BAC at $11.3 to take advantage of this huge drop. If the market sinks, this stock might be pressured (will buy more)
- out of the 1trillion of loans sold to FREDDIE and FANNIE, only about 20bln were requested to be repurchased, and only 11bln were actually resolved and repurchased, and out of this, only $2.5bln were loss.
This means, the FED may force bac to buy back $37bln loans, and that would lead to a $9bln loss, (but it will spread over 2 years). The stock has been punished too much.
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