Stock Traders Blog

Yesterday I bet Bank of America would rise above $14 today. It is definitely not going to happen. Because Citi group’s Keith Horowitz just downgraded Bank of America and lower its price target. If it is not for the downgrade $14 today is not out of reach as the prefer to common share conversion of Bank of America is over subscribed and Bank of America has surpassed the government’s capital raising requirements as I expected.

Well I guess, Keith Horowitz the analysts at Citi Group who downgraded Bank of America must have work with some investment banks which took a short position on Bank of America yesterday. =) It is just a wild guess. I think for whatever reason the downgrade is stupid. It hurt the sector including Citi itself. If I were him I would at least postpone the downgrade tomorrow. That will make more sense evaluation wise. Because without it Bank of America will be above $13 today for sure and downgrading it tomorrow will absolutely shake the market and show the power his opinion.

Bank of America closed at the same price as yesterday. I am still holding it so there is no change on my account balance. I am kind of in waiting mode right now. I am waiting for BAC to bounce back so that I can recoup my loss and start trading again. I feel BAC may not be a good candidate to trade since it is kind of unpredictable to me. I feel USB is more predictable.

Related posts:

1. What is The Credibility of Investment Firm’s Upgrade and Downgrade?
2. Jackson’s Death is equally Surprising as BAC’s Downgrade
3. Watched the Market All Day But Didn’t Make a Move
4. Bank of America Earning Forecast and Financial Statement Analysis
5. Baidu is Holding up Well Today