Bank of America Corp (BAC)

[Portguyofva]

Watch the options action which will be one of the best indicators on where BAC is heading. Max pain was $8 for 16June12 expiration, but with China's unexpected rate cut, and Fed's desire to be part of the solution; it looks like the market will be going higher and the max pain could rapidly move to $9. BAC had a short squeeze start yesterday. The shorts had an opportunity to get out in the first hour and again on the mid-day pull back to 7.50. Today those that were stubborn or non-believers, will likely get a hard lesson learned.

Bottom line IMO: $8 was already in the bag for BAC near-term; with China's surprise announcement and anything at all positive out of the Fed today, BAC could go to $9 quickly and with little resistance. With BAC at $9 a retest of the $10 resistance level becomes highly probable.

I believe big money (institutions) is still controlling the direction of BAC for the most part. Considering the large bets the financial institutions (BAC’s Competitors) placed on BAC last quarter between 8 and 10, I have to believe they are looking for a nice profit which suggests BAC is going well above 10. IMO, the only question is when. If the market takes off (looks likely) we could see 10+ much quicker than what I was anticipating. Options action and max pain in the out months suggested 10 likely by the end of the year. Considering the market has lots of room to run following recent correction, we could see 10 in July or August. GLTA!