BAC is not for the faint of heart, and today was a disappointment. Last week we looked like we were going to break $8, today we looked like we could close below $6. This week it is all going to be about M2M. In the next few weeks it is all going to be about earnings (BAC and the other financials) and passing the stress test. Nothing would surprise me this week, however don't forget recent history, BAC is double ($3-$6) what it was in early March. I would think, intuitively speaking, it is much easier for a $6 stock to go to $8 than a $3 stock to go to $6. Today, in my opinion, was a buying opportunity. We will all know the truth in a very short time! It's all about perception, if we go up in the next few days, Monday (today) will be just a distant memory.....
I would only get concerned if BAC breaks below the 50 dma on big volume. All of the recent down days are on low volume, and the up days are on higher volume. This is the exact opposite of what happened a couple of months ago.
It is really not a surprise that BAC has pulled back from the high.
If M2M is the game changer for the banks like most analysts are saying, we should see a move up over the next few days on anticipation of this!
If we dont get a move into thurs i will be a tad concerned. One would think M2M would be priced in by now as it seems a done deal, maybe wall st is just trading whacky these days and the move will come after the fact!
Im surprised banks too such a big hit today regardless of geithners comments, but sometimes you just cant explain market movements!
Good, pokerpro, perhaps your poker skills are giving you insight into the way Wall Street really works. BAC can rally to $10 just on the perception of a turnaround. Changes in M2M would do it, I think. The actual outcome comes later, hopefully after you've cashed in.