I'm actually long BAC plus got another limit order for today in my short-term systematic trading account. But its just a snapback play
in regards to BAC, i wouldn't buy it but there's a possibility in spin offs. a more proper valuation in that scenerio would be around 9/10 a share. will management have its hands forced to sell off assets? a recession is not fully priced in and looking more likely as more economic data comes out. the stock could get a lot cheaper
Larry Meyer: Fed will go all-in in a new recession, way too early for QE3(He said the same thing about QE2) http://video.cnbc.com/gallery/?video=3000037341
Just about any other big cap financial looks stronger technically. However you could be right about a bounce, and today's low of 6.75 provides an obvious stop if you're wrong. I posted a link to the Whalen piece (published this morning) in the BAC thread: http://www.elitetrader.com/vb/showthread.php?s=&postid=3264562#post3264562
Berkowitz likes it. Biggest position of his huge FAIRX fund. He lost quite a ton with this position though. http://www.cnbc.com/id/43343328/Fairholme_s_Berkowitz_Still_Bullish_on_Bank_of_America I like the idea of buying stuff that smarter than me analysts have bought for 2x the price, in this case it would be BAC and SHLD.
Paulson's biggest fund down 21% through the end of July. Down another 10% in August. That's just ridiculously bad for a supposedly sophisticated global macro fund. Paulson never was a global macro guy, but hit the jackpot when he hired Pelligrini who dreamed up the housing short. I find it hard to believe that Paulson's investors aren't redeeming given this pathetic performance. His fund could definitely be the reason behind the devastation in C and BAC.
Obviously he was right about gold but for now we can say he used the wrong method to play it's rise... through the goldminers. It's like I believe GoC once said on this board. Being right on a direction of a certain asset is only like maybe 20% of what is needed to actually be succesfull. It is quite strange to see many of the miners being below the levels of where they were when gold was below 1000$ but it is what it is and time will tell which one is overrated (gold) or undervalued (the miners).