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Now I'm invested 13.6% of my current portfolio funds in BAC at an ave. cost of $7.5 per share. I'm also invested in C about 29.7% of my funds.
However, should BAC price approach lower $6 and below, I will buy more to bring it up to 20-25%. I'm plan to buy more if share price declines about $6 and under.
It's important to have a plan.
Good luck with your plan.
For your info, the utiliies have been on P&F Pattern Double Top Breakout since Dec. 22, 2011 and reconfirmed on March 12, 2012! Still going strong. As to individual utilities, just do your own dd work. Good luck.
As to the LMP, the current correction is still ongoing... nothwithstanding today's up market.
Good luck
Both the larger market and BAC are in downtrends at this time.
Btw, JP Morgan Losses are 4 Billions and not 2 Billions. I suspect this was known to those involved including Jamie Dimon... but most likely it was deliberately handled in this manner to soften its impact.
The update of my LMP (Larger Market Picture) Indicator shows that the internal strength of the market is badly eroding by todays several new BREAKDOWNS in its components. This comes on what I posted on May 8 saying that the Indicator had confirmed the preceding week's signal that the stock market was weakening.
Accordingly, this correction may likely be the worst one since the bottom in early March 2009 of the current cycle of the market.
We shall see as it unfolds. But at this point in time, things are not looking too optimistic. Yes, imo, BAC share price is heading lower given the present situation.
Sentiment : Sell
JP Morgan losses are more like 4 billions and not 2 billions as first reported.
I suspect this was known to those involved including Jamie Dimon... but most likely it was deliberately handled in this manner to soften its impact.
And, today's update of my (LMP) Indicator for the larger market shows that the internal strength of the market is eroding by several new BREAKDOWNS in its components. This correction may likely be the worst one since the bottom in early March 2009 of the current cycle of the market.
We shall see as it unfolds. But at this point in time, things are not looking too optimistic.
It is said that "only fools chase bottoms or tops". One advisor said do like what you do when you eat fish... cut the head (top) and tail (bottom) and savor what's in between.
If one is intent to watch it closely, I would choose to check the 5, 10, and 20 ema's and their interaction as any likely change that's going to happen will appear there that can be 'meaningful' in the technical front.
The most important feature of a moving average is its slope. At this time all 3 of these curves are sloping down. The trend is down.
Any change in trend will be seen (retroactively, of course) by keeping a check of the 5 ema when first it flattens and then turns upward. Crossing the 10 ema upward could probably hold a promise of the beginning of a bottom formation. In order that to happen, the share price has to move up for few days (somewhat consistently) by 3%-4% (18-25+ cents a day). But should these gains are soon given back... it's not a good sign, especially if they exceed above 50%.
A crossing up of the 5 ema with 10 ema and then both gradually turning upward in the direction of 20 ema could hold the promise of a likely trend reversal.
It's good to keep in mind that charts only track where price has been... and do not tell where the price will go. Only where it has been in just the recent past.
ST, IT, and LT the trend has been down... since March 26, 2012 Presently the larger market looks also weakening and a correction in progress. It has been about 38 months since the bottom in early March 2009 of this market cycle. My 2c.
Good luck
You do have the right approach with BAC- accumulation in steps by lowering your ave. cost, in times of prolonged downtrends with big company stocks such a BAC.
Ideally, the buying should be timed and done at prices gradually lower from your original purchase price... say beginning from 15% down (from original purchase), then 25% etc. and with increasing funds, if possible.
It takes patience and determination, besides funds of course.
Money management and patience is very important here. Knowledge of T/A to interpret support and resistance levels could also add to one's perspective.
Good luck
BAC is already in a downtrend in ST, IT, and LT trends, in case you were not aware of its trend status. Good luck.
My BAC shares ave. cost is $7.92
I intend to buy more around $7 or under.
Since the charts show ST, IT, and LT trend is down, the chances seem fair price may go even lower than $7. The larger market is now trending down as well. We shall see.
I just posted the following on another board
"My Indicator for the Larger Market gave a warning early last week. Since then things have gotten progressively more negative. Today, in addition to the warnings and few breakdowns, a P&F Pattern Triple Bottom Breakdown confirmed of what may be coming ahead: A CORRECTION of unknown magnitude as of this time."
Continued...
Should a serious correction hit the market, most stocks, including BAC, will be affected by it. Accordingly, be aware that such a likelihood exists at this time. My ave. cost for BAC is about mid $7's Should it go under it, I will be buying more for IT and LT. The important thing, imo, is to plan for that eventuality, should BAC price go lower. Or, those wanting to short may have a better chance for success. We shall find out in coming weeks/months. Good luck.
My Indicator for the Larger Market gave a warning early last week. Since then things have gotten progressively more negative. Today, in addition to the warnings and few breakdowns, a P&F Pattern Triple Bottom Breakdown confirmed of what may be coming ahead: A CORRECTION of unknown magnitude as of this time.
Consider that 38 months have elapsed since the bottom in early March 2009. The record shows in general that Bull markets last from 22 to 33 months. If this is one of those cycles, it may be that the bull phase could come to an end. Or it may be just a correction in a continuing (secular?) bull market should we establish new tops in the months ahead. Or could a bear phase is about to start is if the usual 4-5 year cycle is assumed?
If we assume the latter, the correction could be deeper than the corrections we have experienced so far in this cycle.
A correction of many stocks appears to have started already and it seems to me that the fast expansion of the breakdowns in the components of my Indicator since last week (9 out of 17 total) is indeed a fast pace. This is rather a fast expansion and unless we begin to head soon in the opposite direction... (which I doubt if we assume what I stated above), could escalate into a bear phase in the weeks/months ahead. We shall see.
Just wanted you to be aware of what my Indicator reading at this time. The market can do anything.
Good luck to all
Hmm... If that were true, you would be rich.
Each market is unique no matter what the stats say.
The market is a formidable challenge. Could you use the same logic forecasting the weather without doing dd every time?
BAC support level being tested at this time. Technically the chart looks very weak and I wouldn't be surprised if the support fails. I would be a buyer under $7.95 range for IT & LT.
JPM and WFC will report earnings on Friday April the 13th... and they may impact BAC price. BAC earnings report on Thursday April 19th. Interesting week ahead for the banks.
Massive support around level 8.12 and the trend is up
I bought it at $4.59 and hope to make some money after a long wait.
However, I made money the first round soon after the March 2009 market bottom when I bought at $2.75 and sold later a bit early at $3.5 Thus I am ahead.
But the second time around the wait has been a bit long. The reverse split was not good for investors as a higher number can fall a long way down. Had they kept share value before the reverse split, we would be in better shape.
However, BAC is a different story. It was great the first time as I more than doubled my investment... and now I'm ahead as well accumulating it $5.18 in Dec. 2011 & $9.20 a week ago. I will buy more should price go lower soon.
Good luck trading/investing
Another point is just the recent unsustainable almost vertical rise in the price of BAC shares. It will have to fall back to a sustainable level and pace of fluctuation. Otherwise, there won't be enough money to pay all the options speculators. It just doesn't work in this manner. Simply not realistic to expect price continue like even last week it happened. It was 22%!
Excellent charts above.
Reading the charts, I say this could rudely test one's patience. However, one has to distinguish between patience and obstinance.
I can afford to keep the 5000 shares as I'm doing pretty well with my BAC and C shares. Actually I'm adding on my BAC shares on weakness. My ave. is about $7 and at this time the price is trying to grasp $10.
However, uninformed (ignorant?) patience in the stock market can be hazardous to one's financial health. One has to strike a good balance between greed and fear. Yes, it does take time to learn that... and can only take place in one's experience. Reading books and taking high degrees may help... but they will never do the job!
Good trading/investing
Banks are part of the infrastructure of the financial system. They are an important part and as they are there in the process of an improving economy. Actually 40% of my portfolio is now in 3 banks- C, BAC and Irish banks.
True. I would buy more at $8.50 should it drop to that level.
I agree with what you said.
I made money already since the market bottom in 2009 and this is the second time around for me. My ave. cost this time is about $7 per share. Last time I bought right under $4 and sold at $9 after several months.
I will trade with part of my shares. For the rest I will keep it for an intermediate time frame depending also with the larger market condition for which I have an Indicator.
Good trading/investing.
Good to see you too, King.
Interesting and insightful article. Thanks.
Behind the current 'exhale'... it is indeed surprising to me to see signs that the underlying strength of the larger market is still getting stronger.
Good luck in your trading/investing. You must do what makes you feel comfortable and right.
WOW, what an accident! Sad... Unfortunaly no point in asking if the driver escaped alive from it.
Yes, I think we will have a correction... but it will of 'exhale' variety. The underlying internal strength of the market remains quite strong. Good luck.
Hi Rivers 1, it's good to see you, too.
My Indicator which is comprehensive in scope to cover the larger market status, indicates the direction of the market by the successive changes that I observe (when I can) and growth of its momentum in its internal strength.
As I have been 'reading' it for few years now, I hope I am becoming more adept in my interpretation. I care for objectivity probably because of my engineering education and background.
Having said that, forecasting bear and bull markets is largely guesswork. And the depth/magnitude of any correction, whether in bear or bull markets, requires more than interpreting my Indicator. But it serves my like high beams of a car seeing the curves of the market.
Bearish signals? It does show the changes and direction. But how deep a correction will be is another matter. It's a real challenge that different technicians approach it differently based on their knowledge and skills.
I think an ability to have an 'insight' into a coming bear let alone its magnitude is a most daunting challenge. I think such a person requires to know much more than just being good at reading/interpreting TA charts. I think the knowledge of stock market history, FA, TA, an ability to interpret economic data, knowledge of Cycles (bull/bear and the type applicable to the current environment), psychology of times, etc. all may help.
I am in agreement with your observations as to the political situation at this time.
Last Spring and Summer I was not able to continuously update my Indicator because of vacation and travel.
Good trading/investing. JJ
I agree. The slow pace of what we have been seeing in the last few weeks seems gathering steam and a relief correction seems unavoidable. Though, I should say that the internals of the market are still strengthening in my view notwithstanding a normal 'exhale'(correction).
Thanks for your response and the chart. Good trading/investing.
The big banks are convenient as they are spread in networks in the U.S. and around the world.
It's not a matter of liking them the big banks when it comes down to meeting customers needs. Not justifying the bad deeds of the big banks like GS, BAC, C, etc.
The need is what determines and the look of being there in an increaingly mobile society and world at large. The smaller banking institutions like credit unions, etc. may be good if one is not mobile and living mostly in one locale.
The way things have become in a world pf growing globalization big banks are better placed to fill the great needs for banking services. I notice that, e.g. Citibank, one need for meeting the cash demand for the travelers is being achieved by their installation of ATMs in most towns in the U.S. in 7-11 stores... avoiding to open costly branches. This is convenient and efficient. Smaller banks and credit unions will not be able to serve their clients in such manner.
How soon?
It appears that you're drawing conclusion only based on that.
Are you aware that there were SIX BREAKOUTS yesterday in important market indices?
Yes, a correction could come. But NOT while so many breakouts are just taking place. Good trading.
OBV did not go down when the price went down.
Acc/Dist went down but only slightly... and that's understandable. I too stopped accumulating more shares... and it is likely that many others may have done the same.
I already have 40% of my port capital tied with bank stock shares such as AIBYY, C and BAC. I'm doing good.
This time I'm watching AIBYY more closely in case it makes another jump to take some profits. I breached my own rule with the recent one.
Such jumps usually follow with a correction and a longer period of consolidation... because more savvy traders take profits. While novices dream of making a killing... but may end up instead getting killed. I know I've been there too.
Good luck.
Sky is the limit -:)
Though it sounds like chinese to me... it seems you have hit the jackpot!
I hope you're right. I'm ready!
Have the funds. Will be waiting.
Sold @$6.50
Bought on Feb. 21, 2012 @$5.45 and sold this morning @$6.50 for a profit of about 19%.
Not good to fall in love with any stock... with hopes of making lots of money in the future.
Good luck.
I hope to catch it just above and around $7 as my cost is right there in order I may accumulate more BAC shares. I would buy more under $7, of course. The larger market is just doing fine at this time. The 'exhales' are normal and good. Good luck.
Just preparing taxes for 2011. I show a profit on ROYL shares I traded was 16%.
It looks like I'm gonna do much better this year.
I hope BAC share price goes further down next week... while ROYL share price goes up. I'm already ahead by 11% in ROYL but only 8% with BAC.
May be good to have the opportunity of shifting the funds from ROYL to BAC.
Didn't he say 'this horse is very sick'? That seems his reason. C'est la vie! Blame the man in the mirror... in this 'game'.
It has been an impressive rise in the larger market since Nov. 30, 2011.
From what's unseen to most is at that the internals of the markets are STILL positive and support higher levels to come at this point in time.
Good luck.
Using my own (TA) criteria, here's what I see for ROYL:
Last week it was up about 23%.
On Friday it had a P&F Double Top Breakout which makes it an attractive buy even at the current price for it and lt.
Looking back, the right time to have bought ROYL was in late October 2011 uainf rhw interaction of weekly 5 ema with the 20 ema. However, it risen almost 70% since then and one should not be surprised to see a period of consolidation. It appears to be good for it term. Besides the internals of the larger larger market is looking also good at this point in time. I have traded this stock profitably in 2011.
Good luck.
The chart shows the W formations to be almost reliable for the given period of time.
And there are other signals that support the likelihood of higher market levels. We shall see. Good job.
Right TTBB, I agree that it can be dangerous to day trade at this time... given the current uptrend. However, hardy souls may try to swim upstream like salmons. It all depends on one's skills, knowledge, and experience.
The signal came on Jan. 3, 2012. Now, even after six weeks, the internals of the market are still pointing to higher levels to come.
Good luck.
PS: I bookmarked T3LIVE.COM/video.html
Great overview of the larger market picture and several individual stocks. Thanks.