Twills08
Oct 30, 11:44 AM
$BAC is an interesting paradigm among the banking stocks right now. It is currently rebounding off a nasty drop thanks to some extremely shady illegal activity, but this retrace up is largely in part due to the mass exodus from AI/tech. That exodus became clear and present yesterday when
$INTC took an absolute cliff dive, and semiconductors did their best to follow.
$JPM and
$WFC are all showing a slow grind up off oversold conditions indicative of institutional accumulation, but look close at the
$BAC chart. It has some hallmark bull trap indicators, and it is very close to the neckline of a much larger H&S structure. Originally I felt that the election would cause bank stocks to retreat. I was wrong. Smart money is pouring into them, and this is likely secondary to inflation, rates holding steady, and a mixed result expected at mid terms. I suspect the House goes to the democrats, and the Senate remains Republican. This is net positive for the banking industry. A deadlocked government means no new (effective) investigatory committees, and banking/lending standards will remain the same. I’ll follow the smart money here, and reverse my position on JPM and WFC.
$BAC however, I see continued decline after this bounce.
NFA and JFF as always.
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