The Golden Truth: Ssssssss...They're Slowly Letting All The Air Out Of Bank Of America

Tuesday, November 23, 2010

Ssssssss...They're Slowly Letting All The Air Out Of Bank Of America

Here's the chart:

BAC had another ugly day today on very large volumn relative to its average volumn over the past 30/90 days. Some of the biggest holders have folded their tent and it sounds like more are following. Right now BAC's price is being "managed" lower in that neatly defined downtrend channel above. Check out the TRIX indicator, a momentum indicator which "slows" down the direction the trend oscillations. It's good to use when looking for clues to longer term trends.

BAC is now solidly below its 50 and 200 day moving averages. That is also very bearish. Fundamentally it would appear as if this fraud-riddled carcas is getting ready to be snuffed. They ("they" being Geithner and Bernanke and Henry Paulson) stuffed Countrywide and Merrill Lynch - two hugely fraudulent Wall Street creations - into BAC in order to shift the burden of monetizing the fraud onto the Government. Now they'll go in for the kill and bury all the evidence, just like so many before it: Enron, Refco, Amaranth, Lehman, and Bear Stearns. Of course, first they'll let the Pimpcos of the world flip fraudulent mortagage paper back into BAC as per the terms of the mortgaging servicing agreements under which BAC is liable.

I am playing this using May 2011 8-strike puts. If you are invested in any mutual funds which list BAC in the top-10 holdings, you should get rid of those funds now - the managers do not know what they are doing.

13 comments:

EconomicDisconnectTuesday, 23 November, 2010
Ugly chart indeed.
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AnonymousTuesday, 23 November, 2010
Hi Dave, My bank accounts (savings & checking) are with Bank Of America...should I be worried and shift to another institution? If so, any recommendations? I use these accounts for paying bills and short term cash...
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AnonymousTuesday, 23 November, 2010
Hi Dave, I have a savings and checking account at Bank Of America for bill paying/short term cash purposes...should I be concerned with the viability? Any bank recommendations?
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JohnTuesday, 23 November, 2010
Unequivocable. Sell BAC. Sell any fund that has it in the top ten (long.) I agree. I am short a major CA bank. It may help me.

Davey, I will vote for Sarah Palin or any better candidate IF she continues to pressure the Fed. I will only support candidates who support a full PUBLIC audit of the Fed. No "stress test"!!! No J. C. Trichet scripted "you don't want the truth" like Nicholson protecting us. We must not send any Fed buttlickers back to DC.

John RandI
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AnonymousTuesday, 23 November, 2010
I've got some May '11 9-strike puts. That Ssssssss....might turn into a "poof!" one of these days!
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Dave in DenverTuesday, 23 November, 2010
re: concerns over accounts at BAC. As long as the Govt/Fed keep printing money, and as long as your balances are below the FDIC limits, you're fine. But I wouldn't keep big amounts there. just enough to pay your bills.
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Hal (GT)Wednesday, 24 November, 2010
Ugly chart indeed. Let the bailouts continue and and printing presses smoke.
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BillWednesday, 24 November, 2010
Interesting Dave

http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

On a practical level, this reduces international demand for the dollar a bit. It also puts another nail in the coffin of the dollar as a global reserve currency. It's not too good for the U. S. as the only remaining global superpower
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Dan in UtahWednesday, 24 November, 2010
The French are organizing a bank run on Dec. 7, 2010.

http://bankrun2010.com/

In regards to pulling out your money from the insolvent institutions, the money will still be in the banks (thanks to the printing press), it's just the purchasing power will drop for what you can buy with those dollars.

Buy silver! and food.
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BillThursday, 25 November, 2010
http://www.bloomberg.com/news/2010-11-25/pboc-researcher-calls-on-u-s-to-sell-gold-reserves-people-s-daily-says.html
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AnonymousFriday, 26 November, 2010
The mighty USD Chico.

Mas cheap plata.

Happy Thanksgiving present!
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AnonymousFriday, 26 November, 2010
Bill,

There is no money to be made from being a super power. You must choose to give up the empire or live under it. England fell under the spell of the Nameless War (Archibald Maule Ramsey) through the usurper George the First and established the Bank of England and look how the most successfull, profitable, innovative people in the world were destroyed. Today we are called poverty rock, tomorrow you will be called poverty nation.
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AnonymousMonday, 29 November, 2010
Still early days for this USD rally Chicos.

Mas plata con oro para mi!
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.