If you’re trading Bank of America (BAC) before earnings, you need to see this. (July 14, 2012)
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I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, July 14th. I want to look at Bank of America ( $BAC Bank of America Corp ) in this video. I’m going to give the rest of the financials a pretty good treatment in our stock watch video over the weekend; but I want to just look at Bank of America ( $BAC Bank of America Corp ) here. They announce earnings next Wednesday, at least that’s what I have, that’s on Wednesday the 18th, and I have that from two different sources. I would expect this to continue up, I don’t know what you know, what’s going to happen after they announce earnings; we got three trading days until that happens. But I know this JPMorgan ( $JPM JPMorgan Chase & Co ) popped on their earnings, Bank of America ( $BAC Bank of America Corp ) also of course moved up over four percent; but we’ve still got more to go. I’m looking at about another 40 cents or so on this run before you would look for profit taking to come in; so here’s the thing, and this is just a real quick video, I just wanted to frame this trade for you. So, we have two trading days not three; Monday and Tuesday, company announces earnings Wednesday morning; so we’ve got two trading days and I’m looking for a move up to fill this gap. The gap between the 20 day moving average and the upper Bollinger Band. I think there’s your quick trade, right there. As far as what it’s going to do after earnings, really, really difficult to say and I look at it as two different trades. There’s the pre earnings trade, which is the trade and I’m just outlining, and then the post earnings trade, and in that respect this is the time frame I would use. I would want to use the weekly chart because it keeps me honest, keeps me knowing that as far as the 200 day moving average here, in the 40 week moving average, Bank of America’s ( $BAC Bank of America Corp ) actually are pretty close to it, relative to all these other big excursions and all here. In my view the path of least resistance, brace yourself, is upward, because the stock has been around this 200 day moving average that is now, finally, moving higher again, after moving lower, for it seems like nine lifetimes; starting to move higher again. So, on this weekly chart post earnings, if earnings are good, you’re going to get a lot of wiggling and jiggling around here, but you’re going to see, in my view, a tendency for the stock to move higher just because all the technical indicators, the tumblers so to speak, are falling into place in that regard; but that’s for then this is, for now, looking for a quick trade over the next couple days as traders rush into buying Bank of America ( $BAC Bank of America Corp ) before earnings. Okay members, weekend update. I’ve got a lot of stocks that I want you to be looking at; a lot of them are working really well and they’re the ones that we’ve been covering for a while, so let’s get over there now. Free Chart