Ron K - My Prediction Yesterday BEFORE Banks Crashed

I was walking with Simon yesterday at Orchard road while sharing him some of my experiences in the stock market and how I made great profits $$ over the years since he wanted to get all the juices out of my brain. He haven't attended my course yet, but had already profited $10,000 USD from me as I posted some stocks in my Instagram account and shared some in my Facebook page. Click on the link below to add me if you are interested. I soon then go back to the office to do some work and had another 1-1 with a client where I want to turn his portfolio from red to green again, which is qutie a challenging task. I had done it over the years and I am confident with the right mindset and advises I infused him, he shall be able to achieve it.

https://www.facebook.com/ronaldk.ronaldk

https://www.instagram.com/ronaldkstockmarket/

Soon at 4.15pm, I messaged a client and told them that the market might crash yesterday night. I asked him to look to short USA banks and DON'T buy them. In the end, he did not short and wasted the opportunity while another client of mine shorted small 800 shares instead. He wanted me to mask of the price and stock name so I abide his instructions. Overall, he made $900 but it's what I shared over the 1-1 session and what I gave over my Whatsapp which counts. The question is, how did I know at 4.15pm that the Dow Jones was going to crash and the banking stocks was the weakest link of all other sectors? That's wisdom, experience and some knowledge involved which I shared during a coffee session with Simon and 4 others. My prediction came true, clients made $$ and it proved one again that my foresight and my profound insights of the stock market runs deep.

http://stockmarketmindgames.blogspot.com/2020/06/ron-k-cafe-session-with-ron-k-and.html

Ronald K - Market Psychologist - A Stock Market Opportunist

Bank Of America - Bottom Fishing

Many people say buying at the very bottom and the next few days when it rallied, that's luck and vice versa for shorting at the top. During my 1 year+ of blogging, I had managed to prove that everything in this world is possible. My track and trade record is recorded in every part of this blog and ya'll can verify it for yourself as my actions speak louder than words. Even though at times I made a wrong call or I don't fish right at the bottom right like Hyflux, I am still able to make money the very next day because I understand psychology. Not only that, I had managed to break the traditional approach where most traders/investors think that traditional indicators like support and resistance or price or vol is the thing to look out for turning signals, I developed my K Theory strategy one up above those indicators so that it gives me that extra boost, confidence and conviction to trade heavily without any fear or whatsoever.

On Dec 19th 2011, I alerted one of my friend to watch out for Bank of America because I saw BBs causing mental stress to investors/traders by jaw dropping the price, however their intention was to buy heavily so a rally can be conducted. This friend of mine is in the US so I chatted with him during the Asia hours on Dec 19th and I believe he bought BAC at the opening on Dec 20th. From the day I made the call till today, the stock almost went up 1 dollar and he is smiling now because he bought 75 lots of BAC at the bottom. Now, I don't usually monitor US stocks but BAC is my favorite because there was heavy buying activity. The question is how do I know at Dec 19th, the stock was due for rally? For those who are interested, email me and I shall give you the answer.

And finally, to all those who inspired to trade like me, I just want to tell you that everything is possible. Trust yourself and don't let anyone put you down. Like the famous martial arts expert Bruce Lee, he managed to turn the impossible to possible by breaking many barriers in his kung fu journey and that's why until today, he is remembered as the best of the best and a living legend in his league.

Ronald K - Market Psychologist - The Big Speculator

BAC - The Hourly Rebound

As I was watching BAC trending lower before the opening bell, I became skeptical because it has reached an oversold position on the hourly chart. Look at the trendline, the stock now rebounded strongly early in the trading session, however it was all too early to conclude that the bulls are still in charged! We shall watch how it ended tonight and deduce who won the battle.
 
Ronald K

BAC - The Bulls Barely Survived

Last night, BAC rallied away from the danger zone and managed to survive even though the Dow plunged in the last 4 hours. However, judging it's strength in terms of supply and demand point of view, supply is still heavy and persistent. If this counter is still bullish, the stock needs to show more rallying power to free itself from the bottom edge of the trading range. An ease of upward movement where a long up bar would conclude that demand is overcoming supply and the stock is ready to trend higher. The only relief I got from last night's action was when Dow broke down further in the late hours, BAC did not gave up all of it's gains it received during the opening bell but only fractional of it was shed. (See the highlighted blue oval)

On another note, I saw this piece of news on the internet which might be a good thing to know.

Bank of America Corporation (NYSE:BAC): Insiders purchased 924,870 shares in the past 6 months, against insider sales of -627,610 over the past six months. Net transactions were 7 for the six month period. Insiders own 0% of the outstanding shares, of which there are 9,790,472,000. The stock recently traded at $10.00 and its market capitalization is $101,520,000,000.

Ronald K

BAC - Last Night's Bearish Activity

Last night, I forsee a possible major rally in BAC. However when I woke up in the morning, I saw a different story. The price plunged more than what I exepected. Quickly, I went to search for more clues and answers and found out that the selling might not be all over yet. Looking at the charts attached above, BAC must rally away from the danger zone today or else the uptrend shall be negated. A further breakdown today, I would cut my losses small and watch for the next opportunity. Let's watch how much follow through today after last night's bearish activity.

Ronald K

BAC - A Major Rally In The Making

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

BAC - First Sign Of Heavy Buying

 

Last night while the overall US market was bleeding away, BAC displayed the best trading opportunity for buyers who looked to long in the short and mid term. It was the first time where all the big players' activity was detected after a major distribution campaign a few months back. I am not sure if this is the lowest level for BAC, however I am very sure this is the first time one should look to buy. Coincidentally, as I was reading news on BAC, one article came up which said "Bank of America short interest fell to just shy of 88 million shares at the end of May from slightly above 100 million shares in the middle of the month." This tells me that the short sellers are slowy drifting away from short selling and selling was seen abated.

http://www.thestreet.com/story/11149806/1/bofa-shorts-scatter-as-stock-hits-new-lows.html?puc=tscmarketwatch&cm_ven=tscmarketwatch

I am sure they are looking to put this stock up in the following weeks to come. Look to long on a reaction!

Ronald K

BAC - Trading Range and their opportunity

Last week, i blogged about BAC and this morning when i saw the price, i knew that it is constantly in a uptrend and marching towards a new high. BAC had been in a trading range since the day it broke out. Trading range offered a very deep insight of how big operators work. These trading range could be absorption for the market to move higher or absorption for it to move lower. Well, trading range is formed because of the heavy selling that took place earlier on and the big operators would need to slowly buy them back bits by bits and vice versa. This process sometimes take a long time and it tire out the public. Trading range is also the transferring of stocks from the hands of the weak holders to the strong holders. When trading range appears, public is always saying that oh the market is not moving higher/lower and is in the trading zone, not much money could be make. I totally agree with that, however if you understand trading ranges and how to spot them to your advantage, you could benefit handsomely from it.

See the oval area that i circled? I know these trading range is absorption for the market to trend higher. I am a vivid fan of trading range because it offers such a huge opportunity for big money to be made. I had been practicing my skill on trading range and i agree sometimes it is really difficult to determine. However, this time round for BAC, it is very easy to spot. Prices are congested into one confine area for a further breakout to happen. Psychologically, the big operators are making this stock to appear that it has lose its strength and starting to turn weak. The reason for doing so is to get you thinking that this stock is going to tank and luring you to sell so that they will buy more and further push up the price. There will be a time when the big operators would encourage the public to buy and that is time where prices are sky high and the public will be trapped where greed and fear starts to set in. That's where the big operators would be slowly unwinding their holdings and start taking hidden profits, however this had not appeared in BAC yet.

For those who had purchased BAC, good luck, it is on it's way to cloud 9. Saw the closing price for the last 2 days? It went up almost 70cents! For today, I presume it will be in a absorption mode again for it to trend higher, which is to say that BAC needs to take a break before it will continue its uptrend.

Ronald K

Bank of America, A Case Study

Last night i was at a company event and i had a chance to meet up one of my friends and we talked about the stock market. He told me he lost about $25000 in the stock market trading based on news and i felt sorry for him. $25000 is a lot of money if you ask me and if i were to use it, i will trade wisely and invest mindfully. My trading style does not involve in reading any news, and yes, i read none of the news in the media. Those news that i read, it is only for reading leisure to know what is happening around the world and will never be used as one of my trading basis point. I asked him, since he trades on news, what news will determine his entry/exit point and since there are so many news published everyday, which news will be the deciding factor to execute a trade. He could not answer. Remember the best news is no news and treat all news as bad news. If you can understand that, then you are on a highway to success. We were chatting and we mentioned about Bank of America stock and so i decided to give him a lift and study the big boys operation of this stock.

1. BofA had been sold down quite heavily since it reached a high of $19.48. I wont go into details on what happen during the selldown phase but instead channeling my focus to the highlighted areas. BofA found it's first support around the price of $12.15 and that's where the first sign of buying was detected. Big operators were buying this stock around at this price. The psychology was simple, the stock was sold down heavily and they felt that the price was a bargain then so buying took place, however the condition was still not ready for a big up move yet. So, the stock went up till $13.87 and starts to range.

2. Ranging is a difficult thing to decipher as it can move up or it can move down. From my years of experience, i was able to guess that this trading range was going to be a flush down and so it happened accordingly as to what i predicted. This trading range was a preparation to redistribute more stock so that it looked weak, breakdown and produce panic selling. You might ask, so if the price was going down further, what happened to those stock bought at $12.15 by the big operators. Well, some of them took all their profits around the $13.50 range and some of them were keeping it to buy more to average up their holdings. The big operators are smart guys, they knew what was the target price they were driving the price to.

3. And so true enough, the panic selling sets in and the share price plunged further. A lot of people were looking to sell and get out of this stock as they were afraid it might go lower and cost them more. Psychologically, this panic selling maneuver is created to flush out the weak holders so that the big operators can force those who were still holding onto this stock to liquidate. Therefore now, the stock is transferred from the hands of the weak holders to the strong holders, and that is the main objective. Think about this, wouldn't you liquidate if you had bought the stock at let's say $12.50 and now the price is $11.01 and you are not sure if it might go lower? That's the whole idea, get you into a panic stage, so that you sell and they buy.

4. Saw them buying the second time? They revealed their true colors. If that whole panic selling was real selling, why would they buy back again? This time round they were still not convinced that the weak holders totally flushed out. There might be some leftovers. 

5. So they created another stage where the selling was not so strong, but emotionally stressful enough for you to liquidate your holdings. Moreover, the price dip further below $11.01 and reached $10.91. By this time, a lot of bad news were in the press. Analyst started to downgrade this stock and the public seemed to be disappointed with the company. I saw the CFO and some directors were also selling this stock at $10.95. It was this time that the stock was going to sky rock.

6. The reason i said this stock was going to sky rock was because it went into a new low and did not dip lower. The selling was not so strong as compared to the first panic selling. The fact that it reached 10.91 was something to be on alert. The next few days of action was something to watch out for. If it continues to dip lower then all the analysis earlier on should be erased. However, if it holds, this might be accumulation for a breakout.

7. The stock did not dip and instead there was an influx of fresh demand. This was the time to buy as this stock had been depressed 2-3 times and the big operators decided that this enough as all those who panic sold had sold off and its time to mark the stock up.

8. And so you see today, prices were up. BAC is definitely on its highway to record new high and by that time good news will set in and you will see the media advertising about it.

9. Today prices were in the range where we first saw demand came in a point 1. Big boys are checking to see  if the selling is still strong around that area. If it is strong, they are willing to absorb the selling and it might take some time, else the stock is poised for a further up move. Observe the rectangle drawn, that might serve as a long accumulation area on a wider view of a bigger trend. What it means is instead of those points highlighted in ovals, the whole rectangle serves as an area of accumulation for a bigger up move. And the story goes on.

By understanding supply and demand, market psychology, we are able to see the footprints of the big operators, follow them and profit from them. :)

Ronald K