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.


  1. 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...

  2. 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?

  3. 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

  4. I've got some May '11 9-strike puts. That Ssssssss....might turn into a "poof!" one of these days!

  5. 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.

  6. Ugly chart indeed. Let the bailouts continue and and printing presses smoke.

  7. Interesting Dave


    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

  8. The French are organizing a bank run on Dec. 7, 2010.


    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.

  9. http://www.bloomberg.com/news/2010-11-25/pboc-researcher-calls-on-u-s-to-sell-gold-reserves-people-s-daily-says.html

  10. The mighty USD Chico.

    Mas cheap plata.

    Happy Thanksgiving present!

  11. 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.

  12. Still early days for this USD rally Chicos.

    Mas plata con oro para mi!