Quote: "I think also factors may be contributing to this new dynamic. One is the use of automated trading systems. It appears profits are being taken by big money... to the disadvantage of the old approach of LT (even IT) investing. ST profit trading systems that are profit based rather than the LT method given the general instability of the many over-indebted economies and financial systems in trouble around the world.
It seems that LTBH is becoming and endangered species when the crowd (herd) of investors still is as confused as they happen to be in general following what the headlines news (NOISE) tells at any given moment almost from one panic to another!
Yet, this is good news for savvy investors who are flexible and ready to take the challenge... and following what the market internals may be saying behind the appearances."
JJ8,
Good analysis on changing market dynamics. I'm pretty much in the same camp with you and view the ST opportunities as driven by TA signals and media NOISE.
From a TA and ST perspective, I see BAC needing to get through the 8.31 to 8.36 range, and then a run to the 10 area could happen quickly with little resistance if the market stays positive.
My primary focus is to build a LT position but I will take advantage of ST opportunities when I can to lower my dollar cost average.
Despite the new money-making market trend you highlight in your post, BAC will make a significant move higher and IMO sooner rather than later. Once BAC announces a significant dividend, or share buy-back, ST traders will be chasing this stock to $15+. I think we can be assured that big money will be positioned months ahead of the big move, and we may be watching some of that quiet accumulation play out over the last couple of months. At least I hope so. GLTY!
