Uh, what news and how exactly was it great? I assume you're referring to Paulson buying up shares back in the quarter that ended in June. That means he was buying up shares at $10-12. At that price it's a great buy, especially for Paulson who will likely hold on to these shares for 5-10 years.
But all the little guys trading around here who turn their trades on a dime movement I can't see how this "news" translates into a near-term buy rating. We're far to short-sighted for that.
If you're planning on holding for 1-3 years then it doesn't matter too much if you buy at $12 vs. $16. You also wouldn't care if the price ran down to $12 again after buying at $16. However, in the short-term trading world that we unfortunately are faced with it's hard not to notice that we've gotten ahead of ourselves on BAC recovery.
There's still a lot of crap on the books and it's still gonna take a couple years to shake it all loose before BAC is on strong footing again. In the mean time, the wise short-term trader is looking for a good entry and planning a good exit; perhaps not on a daily basis but at least monthly...
You can put it any better than that comment.. This should go back into its original pattern... Truth is the hedge funds know who is buying and where the action is so they will continue with their plans.. it is the little guy that will get suckered in to help them get their short term profits. this will continue to trend up and retrace a bit before it goes. No worries only opportunites to make money as it moves forward.