A Headline Trade on Bank of America
You know it's bad when you start seeing opportunity in a 6% pullback off a 45% move. On Monday I referenced the huge move in Bank of America (BAC) and the unbelievable run to start the year, but when I read more and more of the recent speeches by the Federal Reserve governors, they seem quite intent on targeting the housing sector in the coming months by targeting mortgage-backed securities for the next round of quantitative easing. It appears that this is a large reason behind the move.
Now maybe I am a bit late to this trade and there's little left, but just look at the weekly chart to see how far this has fallen. Bank of America was down nonstop from $15 over the past year, and down from $20 if you pull the chart back father. Even a mild bounce could take it back to $8 or $9, which is where resistance is on this time frame....303 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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