BAC-Cramer Likes It....

Well, f you have been around Trade-guild long enough you know I'm not a Cramer fan. The Cramer effect is real and it gives people who would prefer not to think for themselves confidence in Cramer's picks. I'm still having trouble though reading that disclosure at the end of the show that rolls by so quickly and with a diagonal screen that you literally need to TIVO it and pause the thing to read it-there's some interesting nuggets in there.

Also if you have been following Trade-Guild for the last fw years, you know that I've showed distribution in Oil the same week that Cramer said to buy oil on the next bad inventories report. A week later, the unprecedented, multi-year rally in oil ended and never looked back. Guess who was left holding the bag?

I'm not accusing Cramer, but I will say that it's pretty handy to have millions of viewers buying a stock that smart money is trying to sell-instant demand.

BAC is in Cramer's charitable trust, how long? I don't know, but if it's been in there for the last 7 months or so, it's seen a decline of about 35%.

The media is tired of bank bashing. I just moved over the weekend, I have a new cable service and I don't know the channels yet. I turned on the TV and it happened to be on CNBC-this would never have happened on purpose, but it was there and Cramer was talking about BAC so I listened for 5 minutes-that's my limit.

The Thrust of Cramer's "Buy Banks" argument went like this....

Financials are safe to buy-because, there's no money in reporting bad stories about banks, reporters make money by breaking big new stories, bashing banks is an old story.

There was a great article in the New York Times on BAC.

People are tired about the mortgage mess, robo signers and the Wikileaks story that never materialized (with a condescending tone) plus "people got jealous of all these people who haven't paid their mortgages in the last 18 months"

"Media coverage matters"- "Bank bashing is too boring, we're yawning" "with the media out of the way, we can now buy bank weakness"

"You can go for Bank of America"

The bottom line, you can buy banks now because the reporters chasing the Pulitzer Prize aren't going to win it with old stories about banks that people are tired of. Hmmm. Sounds like a great reason to buy huh?

Here's this morning's BAC charts

I'm surprised BAC isn't up more this a.m. There may still be a trade (which I put out a cover the BAC short notice on last week) in BAC. Stay tuned.