Bac

Seasonality indicates up at least until 3rd week of Jan. And overall until April/may. I think the fiscal cliff thing is just the background fear the market needs to go higher. Also my 2 cents.

 

What a difference a day makes. Can get the $11 Jan 19 for $0.10 and the $12 May 18 for $0.22

Will wait and see what happens tomorrow.

 

i wouldn't be surprised it if gets at least back to the 9.50 area for support, maybe much lower
MACD is diverging on daily chart, might not be a tiny little pull back

 

as i said it looks like it's going lower in the short term (next two weeks). yesterday was a key reversal which is a very bearish sign. these usually only show up a couple times a year and when they do it's a high probability trade (the very few times it fails means price is going to skyrocket in the other direction).

i'd look for support at 9.5 then at the 50 dma.

 

Excellent points. Let's keep a lookout on fiscal cliff news. That could be the big engine driving market direction for some time.

 

b/w now and the resolution of the fiscal cliff, the market will be scope locked on this and pretty much trade off of it solely (always there's europe, middle east, black swan).

IMHO, the market sells off after the resolution of the fiscal cliff b/c everyone expects congress to get their act together. remember after bin laden got dead - the futures spiked up on the news on a knee jerk reaction then proceeded to drop 46 points over four days straight (from peak to trough).

 

More very good thoughts. "Sell the news" really works, thanks.

 

Church,
Just the other day I was scared about BAC toppishness. It was very short term, and is gone now.

Monthly chart on BAC is awesome. Closed above last recent high candle in March, closed above 20 EMA. Next resistance is around $11-11.50. If it can get thru that then $14.50-15 should be easy.

Still needs a daily close above $10 and $10.25. I think that is coming up soon.

I am okay at the tech analysis for long term but my psychology is only good for very short term actual trading. I must swing trade, usually 1-3 days. Only thing that works for me.

I hope you make lotsa $ on BAC.
Bry