BAC - Bank of America

The analyst's have decided to stop the financial rally with a number of downgrades, as the banks are down but off their lows.

 

Yes you are correct, $18 was my price target price on BAC. Then I was overwhelmed with the rally and have not sold any shares. I see it going higher but I do have a stop in to lock in some profits if I am wrong.

There are clear sky's above $20 if it can convincingly be broke.I have the same stand on VLY.

 

Quoting what I wrote on the Stock Market today, BAC is holding up well and due a pullback anyway.
"The shorts are pleading their case on CNBC regarding the rally especially the banks. Some what of a pull back is good to flush out the sellers where new money can come in"

 

With all the rhetoric from the analysts yesterday it looked like they were going to cause a sell off so I moved up my stop on a portion of my position. As it turns out, Yellen out Trumped the analyst's.

Earlier in this thread I mentioned I bought the $17.00 JAN 19 2018 Calls. I am now deep in the money and I expect them to go much higher before expiration.

 

BAC not making a big move today but quietly sets a new 52 week high as a wedge has formed. It has been consolidating for a week at the overbought level. Stay tuned. . .

 

Moving my stop up, as BAC keeps inching higher

 

Bank of America's stock jumps in active trade to an 8-year high
Bank of America Corp.'s stock BAC, +1.63% climbed 1.4% in active afternoon trade Wednesday, as a rise in Treasury yields helped push it up to an eight-year high. Volume of over 67 million shares made the stock the most actively traded on the major U.S. exchanges. The stock, on track to close at the highest level since Nov. 5, 2008, has now run up 21% in the 11 sessions since the election. Meanwhile, the yield on the 10-year Treasury note rose 0.041 percentage points (4.1 basis points) to 2.362%, putting it on track for the highest close since July 20, 2015, in the wake of stronger-than-expected durable goods orders data and a jump in consumer sentiment. The yield has run up 50 basis points since the election, on concerns that promised infrastructure spending could boost economic growth while also increasing the government's budget deficit. BofA's stock has now run up 22% year to date, while the SPDR Financial Select Sector ETF XLF, +0.49% has climbed 16% and the S&P 500 SPX, -0.07% has gained 7.8%.
http://www.marketwatch.com/story/ba...de-to-an-8-year-high-2016-11-23?siteid=yhoof2

 

This is not Bearish. And overall market sentiment do not want the Financials leading. This happens at the end of Bull Markets but also the market does not usually go full BULL until the financials lead

 

I wrote this on April 13 when the price was 13.73. It exceeded my expectations on post election of Trump. On the first chart it clearing beats the SP500 by a widen margin as it leads the other big banks. If the financial rally continues the second chart shows a $21.50+ price target. Current price is $20.56. I still have my full share count with a stop in place to lock in some profits on a small part of my position. I still have all my $17.00 JAN 19th 2018 calls as well.

 

I understand that your chart does not look bearish for BAC, but actually the weekly shows better the strength (volume) when it broke up and out of the trading range. Of course we won't really know for sure that it is just not an upthrust-after-distribution until it retraces and shows there is no more supply of stock for sale.

I'm a little confused by your statement though:

• Bearish for what? Just BAC or the overall stock market?
• Why wouldn't overall market sentiment want financials to lead?
• What happens at the end of "Bull Markets"? Financials lead at end of bull markets??
• Are you saying financials lead at the beginning and end of bull markets? If so, which is this?
• Do you know that this has always been the case or is this just an old market adage?
• 

 

Out of the norm, BAC is up while most of the other big banks are in the red

 

Weekly Top Insider Buys Highlight for the Week of Nov. 25
The largest Insider Buys were for Bank of America Corporation (BAC), The Home Depot Inc. (HD), Philip Morris International Inc. (PM) and Medtronic PLC (MDT).
Bank of America Corporation (BAC): Director Michael D. White bought 25,000 shares

Director Michael D. White bought 25,000 shares of Bank of America stock on Nov. 21 at the average price of $20.14. The price of the stock has increased by 3.57% since.
http://finance.yahoo.com/news/weekly-top-insider-buys-highlight-173852183.html

 

After a record breaking run, BAC giving back from it's overbought level as the broader market and financials are down

 

I stopped out on 14% of my position for a 50% profit.
I still have all my $17 JAN 19 2018 calls.

 

BAC strong out the gate this morning

 

Recipe for $22 BAC on 12-31-2016:
1) quarter point rate boost
2) Fed indicating more hikes likely
3) Santa Claus rally.