I Start Feeling Panicking
I really start feeling panicking about my 2000 shares of short position on Bank of America. It is for sure a lost deal. When I took the short position I thought big bank’s movement should be somewhat in tandem. Some may behave wild but will not be too far out of line. I felt safe to short BAC when I looked at how USB behaved the day before. However Bank of America seem to negate what I believe. The major big banks stock price almost stayed at where they were a couple days ago but Bank of America shot up 10% yesterday and then 5% today.
Will it Move up another 5% next Monday? Probably if there is another upgrade on Monday which I think would not be impossible. Because major staking holder are seeming working with the investment bank and the media to pump BAC’s price up. If there are no upgrades and if the market is neutral then I believe it will full back 5% after investor have a weekend to think about BAC’s recent price movement. New investor may not be willing to get in at this level and some major holder may take this opportunity to take profit and buy others banks that has a clearer picture than BAC. If I am holding Bank of America I would’ve sold it and buy USB already. If the market tank for reasons like Bond jittering then BAC’s price can be down more. Of course there is possibility of the whole bank sector going up another step. That is something I really don’t want to see on Monday.
Monday will be my third day of holding this short position. I just hope I don’t have to lose that much on this deal.
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wow, 2000shrs, sorry to hear that, I wish you have took the time and read my post, before you sold your winning position 15minutes after the market open on uptrend day and an upgrade with a target of 20. you made the decicion to short bac. I never said buy,sell,or short any stock I was just giving you a play by play of what was going on at the time. I’m no guru and would never tell you what stock to by or sell. this has been one of the hardest market to trade, because its not trading on fundamentals or sane logic, its been heavily manipulated by the FEDS,GS and others. Lets see what shakes up with North Korea and the election in Iran, over the weekend. This market needs a 10% correction before we can move forward, this past week in my judgement felt top heavy, low volume, but I wouldn’t fight the feds their money its too long. gl
Hey epena, I am glad you are commenting again. No I am not blaming anyone for the wrong position I took on BAC. The decision I make was caused by a serials of thoughts that are coincidentally come to my mind at the same time. Sometimes it is like the more you think the worst decision you make. One word I had on luck. Hope to meet you on the blog again
Great comment by Epena..That is exactly the market I am seeing here…You just have to remember where the market has come from…What companies are now out of the market, That being GM, LEH, BSC, Chrysler, Merrill (not really out i Guess) but they are not the same company under BAC management. You also have to remember the 34 billion BAC raised with ease. This company is a powerhouse that I want to buy on every single dip. This market has made a 40% or so move in the last month. Money managers are seeing how powerful these moves can be and I personally will be buying the dips not selling the rips as much. The market has seen such horrific news over the past few years that it does not really care as much about bad news in the future. Psychology is a huge part of the market.
Always make sure you watch the tape…This tape is not telling you to be a seller at the moment. BAC fromed a very nice base at 11 from it run up to 15…I loaded up at 11.18 and 10.98, looking for 15 to unload half and will let the rest ride til whenever. But BAC is a stock that I feel could easily exceed 150billion in Market Cap….Just some of my two cents anyway take it for what you will and good luck…I hope BAC comes back for you…I will buy more if it does.
Thanks for your thoughts. But it makes me even more panicking
Futures are looking good tonight if you are short, asia is down. hopefully we get a nice gap down and get to 923 on the spy. GL
Yep. Look likes I have chance to get some money back. Thanks for being on my side. Are you shorting also?
My target on the s&p of 923 was reached, I expect some buying the dip here for a reversal to 930 and no higher than that. the s&p need to close below 923 to induce more selling. the financial are acting stronger than expected, I had some penny stock shorts but I covered already.
Wow I will never play with penny stock. I covered my BAC also take lost