BAC is currently in the early stages of a bull campaign. I saw a major buying campaign in the making where a major rally is about to happen! The shares are now in the hands of the strong holders where the stock would not falter much. I believe a trade on the long side should yield profitable results.
As of writing, JP Morgan also exudes a very powerful buy signal. That stock is also a major rally in the making!
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When the News is very bad:
Bank of America Estimates Cut
NEW YORK (TheStreet) -- Bank of America(BAC_) short interest surged some 16% in the first half of July, ahead of the bank's second-quarter earnings report.
Bank of America short interest rose to nearly 125 million shares in mid July from about 108 million at the start of the month, according to New York Stock Exchange data released late Tuesday. Bank of America, regularly one of the most heavily-traded tickers on the NYSE, was the fourth most active ticker among short sellers.
Bank of America shares have had a rough 2011, losing more than 25% of their value through Tuesday's close. They hit fresh 52-week lows shortly after announcing more than $20 billion in mortgage-related charges June 29. The bank also gave analysts fresh earnings guidance, officially reporting a 90 cent loss on July 19.
Since that date, the shares have been roughly flat.
Other widely-followed NYSE-listed financial stocks generally saw a decline in short interest, including
General Electric(GE_),
Synovus Financial(SNV_),
Citigroup(C_),
Wells Fargo(WFC_) and
JPMorgan Chase(JPM_).
Financial Select Sector SPDR(XLF_), a widely-followed exchange traded fund that tracks financial stocks, also saw a big drop in short interest--to some 92 million shares from 111 million at the end of June.
The NYSE publishes data on the 100 most heavily shorted listings twice monthly. Short interest represents shares that have been borrowed by short sellers who bet a stock will decline in value. They then hope to buy the shares at the lower price to repay their debt, while pocketing the difference
-- Written by Dan Freed in New York.
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Bank of America Short Interest Jumps
NEW YORK (TheStreet) -- Bank of America saw its earnings estimates cut by yet another analyst following a quarter in which the bank lost $8.8 billion, its largest in history.
The latest analyst to reduce his estimates was Sanford Bernstein's John McDonald. McDonald cut his 2011 estimates for the bank to 43 cent per share loss from an 87 cent gain. McDonald's cuts put him near the low end of the range of the 27 analysts surveyed byThomson Reuters. The analysts as a group are looking for a loss of 23 cents per share in 2011, with the most bullish predicting a 16 cent gain, and the biggest bear eyeing a 44 cent loss.
It seems likely, however, that many analysts still have yet to lower their estimates, since McDonald has been a Bank of America bull for quite some time. McDonald has had an "outperform" rating on Bank of America since at least Oct. 2, 2009, according to data fromBloomberg, though his target price has dropped steadily from 25, on that date, to its present level of 13. Despite his latest downward revision, McDonald made no change to his "outperform" recommendation or his $13 target price.
Bank of America's earnings, announced Tuesday of last week, had largely been preannounced by the bank June 29. Nonetheless, the bank's shares sold off further after the earnings release but then rebounded later in the week, along with shares of other large banks such as
Wells Fargo(WFC_),
Citigroup(C_) and
JPMorgan Chase(JPM_)-- Written by Dan Freed in New York.
Ronald K
