And you can't have a rally when institutions are dumping a stock. This stock was near 70% ownership by institutions just a couple of weeks ago, now it's at 60%. You're not going to see a rally next week, because big money hates the stock. You saw S&P downgrade TWO full notches, so chances are, more downgrades will follow earnings. In fact, it was BALLSY of S&P to downgrade like the just days before earnings.
Look at Citi, they barely have more than 40% ownership by institutions. That is up from less than 30% earlier this year. JPM has over 70% ownership by institutions. There's a reason why BAC is getting hit harder than the others and that's because the big boys are dumping. They're not going to turn around Monday and say "whoopsey daisy, I think we should buy". Not happening until this mess is sorted out.
I'm short, but I'm not hoping longs lose money. I'm telling you to short, because this stock has ZERO upside right now. It may be a $20 stock in two or three years, but it's going to take some pain first. The amount of pressure on BAC from the states is more than BP was facing for crying out loud.
Well, according to the Wall Street Journal, the Money Flow was more than positive on Friday... The stock is trading below tangible book value and people are starting to step in at these levels:
No double, institution selling dominated the sharp drop of BAC stock, a nearly 10% down per week demonstrated this. Mounting concerns will keep pressuring the stock, from TA point of view, BAC may likely test $11 before a meaningful bottoming, of course, the coming financial stock earnings (C, BAC, WFC) will impact the process.
In short term, if you don’t want to suffer the pain from financial shares, just stay sideline or pick up some upward stocks (plenty of them, e.g. tech stocks).
In a long run, there’ll be a recover, a matter of time, all depending on your investment goal and strategy.
Good luck longs and shorts.
Institutions don't dump their shares wholesale in a situation like this , they can't ...take State Street...they have 422 Million shares....that's 2x the average volume and two-thirds the volume on Friday....
If you just apply a little logic, you'd realize that if all institutions were dumping....who would buy 600 million shares, that's 7 Billion dollars...you think retail is stepping in with 7 Billion? Get real. This is an opportunistic weak hands shake out of retail guys who having the good fortune of having gotten in at between $3 and $10 are getting out.....
Big money is buying this, make no mistake about it.
Yeah using your foolish logic, how does a stock drop 10% in two days if institutions are buying and retail investors are selling? Also, how does the % of institutional investment for an equity drop if institutions are buying? Furthermore, is there any doubt your investing IQ is in the single digits?