Earning Potential is Ultimate Driving Force of Stock Price
I lost again all because I didn’t trust my own analysis. In a previous post, “Baidu is Holding up Well Today”, I mentioned that BAC’s earning was not good in fact. Because of general market sentiment I didn’t take the short side today and I bought into BAC today at $12.32. I thought it was low enough to expect a same day rebound. It didn’t happen. I lost again. Bank of America dropped big time today all because its earning potential. I guess BAC will make no profit for the rest of the year so did many analysts. Earning Potential is ultimate driving force of stock price and that is why BAC dropped. I guess BAC will see profit only when loan loss preserve start to decline. With rising unemployment it probably won’t happen still next year. $13 is probably the CAP for BAC in the coming months. I am very disappointed as I haven’t seen a decent green amount on my account for a long while.
 Account Balance 2009/07/20 |
 Transaction 2009/07/20 |
Account Balance Changes: -$160.30
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Try ABT, it’s earnings are out and they are at the bottom of their linear regression channel, 100%. Look at Prophet.net’s 3 mo java chart with linear regression channel 100% technical study selected. Also keep an eye out on my site, which is still under construction, but am blogging as I have time. I’ll be providing access to StockRagAlerts for FREE until the site is finished. When the site is finished the StockRagGold area will have a charter membership subscription price of a mere $55/yr. -Harvey, StockRag.com
Thanks for commenting and keep up your site, can I get a free memebership? =)
Why not keep following PCX? You started buying/selling on this stock several weeks back when it was at $5+. Look where it is. Today it had a nice run too. Sometimes simple is nice.
I also believe USB is a good stock to follow.
Yes I am still following this stock and I brought it under $5 less then two weeks ago as I remember. Now it is over $8. Oil rebound and so did the coal stocks. When momentum came it drew upgrade from analyst also. I dare not to buy at this price. I usually buy in the dip and short after a big run up and usually I end up going against the momentum and causing loss. I guess I am too stubborn. When I missed the turn around I tend to ignore the stock and its momentum. I guess sometimes I just need to go with the flow and understand the momentum the early the better. Just like BAC its downward momentum is strong this morning but I am just not willing to switch side.
why did you dump BAC with such a small change in price? Just curious.
Do you see it will come back above the price I got in tomorrow? I thought about that but the market has been up for 6 days in a row. And I really don’t see BAC has much up side since I believe it will make no profit in the coming quarters. What is your view on BAC?
Congratulations on your vvtv holdings buy the way!
In your BAC trade the other day looked to me like you were buying in the middle of the range. Buy Under 12 Sell 13 is the popular trade at the moment. I don’t think they will be making money either, but don’t let Fundamentals fool you while trading this market. Stick with Technicals…
I am nervous about Wells Fargo’s earning also. Many said Well Fargo was under reserved for loan loss and its first quarter earning largely boost buy accounting tricks. It will report tomorrow. If its earning is not good it will trigger a sell off in financial. And I am leaning towards the bearish view of WFC’s earning.