Wednesday, April 1, 2009

Potential v large move up in financials




This looks like a great set up to me going long.BAC could potentially hit 12 if it breaks w volume.Note the consistently downtrending volume past 2 wks.
If it was still going up and vol was dying I would be v bearish.But instead it is giving up marginal ground on dying volume.
It could always fail but it looks like a good setup. $BKX looks promising also as a potential inverse head and shoulders. But the key thing is some excuse for the institutional players to buy. No M2M repeal, temporary or otherwise and back to the drawing board.

5 comments:

In Debt We Trust said...

Good analyis. DJUSFN volume was also low all day long. I smell something big about to happen. But the safe way may be to just buy straddles.

Erik said...

yea, but look at the accumulation/distribution or obv.

tells a differant story....

Greenlander said...

OBV looks good to me.
I just checked the 60 min chart.
It is just setting up a flag.

I am more bullish now (assuming the M2M news happens) than I have been in a while.

All the charts on 60 min/ daily of financials looks like they are primed for a huge break out.

Greenlander said...

And if no M2M repeal I guess we are back to the drawing board. Even then, if the market holds up until earnings we could still get that big rally.

The way the market blew off the GM/ Chrysler BK was to me extremely bullish. I know it was expected but the market took only a half day to digest it.

Greenlander said...

I also think there are too many ppl expecting a 'sell the news'. The reverse could easily happen as we have been going down into the news/ going sideways, especially w all those long-only fund managers needing an uptrending market to make money.