Stock Traders Blog

I am holding 2000 shares of Bank of America. Of course I am trying to rally the share holders of BAC and I post the following message on the BAC board on Yahoo.

If the conversion goes well and reach BAC’s capital raising target I believe BAC will run to $14 if data released tomorrow is not out of line. I bet on the data side a bit short of expectation will not affect BAC’s running up because the conversion price is at $12.75 as I remember. If capital raising target is met it will mean prefer share holders are bullish on BAC and it will trigger a big run up tomorrow.

If BAC announce that prefer share holders are not so enthusiastic about the conversion then longs like me will be in trouble. But I believe the investment banks will recommend prefer share holders tendering their prefer shares for conversion and I believe the chance of a successful conversion is high.

I am looking forward to seeing BAC above $14.00

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_B/threadview?m=tm&bn=1903&tid=1046900&mid=1046900&tof=1&frt=2

Event though the Commerce Department said earlier today that construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units — the lowest pace on records going back a half-century the market’s reaction is pretty much neutral. If the number were to be inline with expectation I guess the market will explode. From there I can see how strong the bulls are and how they are brain washed. Think about what brought the economy down to today’s level and think about what is able to fix the economy — only one thing that is the housing sector.

Data shows that foreclosure is going up, housing price is still going down, unemployment is still going up and construction is going down. I think there are too many evidence to show our economy is not going to grow if it is not going down more. With the banks stuck with trillions of toxic asset, share dilution and dividend cut people are still buying into those analysts’ upgrade. Look at what they did. They upgraded Well Fargo to strong buy when it was at $28. They upgraded bank of America when it was at $12. Think about how far the banks can go up without paying dividend. Many of them are not even able to pay back the government of the TRAP money.

Anyhow the housing number saved my day and my account balance is up more than $800 today. It seems to me I have to learn to think irrational I have to think what the other side of the people thinks in order to trade well. And I think at least I have to play the long side more nowadays to do better.

I covered IBN at $28.95 and covered Wells Fargo at $26.20. That is probably it for today.

Added at 5:14 pm
I ended up with more trades on Bank of America and I ended up with $1000 share short position on BAC. Please see this post Shame About the Banks and Government
I just don’t believe the public will be stupid enough to be manipulated again just like they are on Wells Fargo’s share

Account Balance Change: +$1,411.15 revised from previous $842.02 after the BAC trades