Ideally, I think financials will be the winner in the next leg of the rally.
BAC can rise to $18 based on better earnings due to increasingly better performing loans portfolio.
All the regional banks are currently beaten down due to the foreclosure mess.
Regions Financials Non performing loans actually rose lately. And concerns of more mortgage crisis have increased the number of shorts in the financials space.
However, looking at the latest job reports, and the latest credit card reports, it seems like financials will be back in full force.
My trading screen is now tuned in to these 3 charts. Financials, BAC and DJ-30
As I wrote earlier, the cool support candlestick formation held and stocks have risen ever since. Good for a quick day trade gain.
For the record too, the DJ-30 chart looks like it could rise another 50 points from 11170 to close at 11220 today.
I am sticking to my financials play. I see massive upside in this space and it will lead the DOW march to 12000.
2 comments:
I just want to informed you Mr. Tradedragon that I sell 1/3 of SMART TECHNOLOGY (SMT) @ 8.80. I still holding MOTOROLA (MOT) and ADVANCE MICRO DEVICES (AMD). Thank you for recommending SMT into your blogs but I still have 2/3 in the market from 8.07. Happy weekend my fellow trader.
I still monitoring BAC at the support level of 11.40, 11.25, 11.03 and 9.25 (the worst price).
Agreed Tolits BAC has not broken out of its downtrend yet. Large amount of shorts and foreclosure mess as of right now make it an ideal play for a huge squeeze....lets hope it happens sooner rather than later. Holding my C also @3.86 hoping for a pop to the mid to high 5s
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