Every day there's a fulcrum stock, today we are seeing a huge fulcrum in BAC, which has the entire market under pressure. Earlier today I said the line in the sand for BAC is $5.00 and that it is a major hedge fund holding. Well, see what 1 stock can do to not only an Industry group, but the entire market.
BAC breaks $5.00 and instantly volume spikes on stop-loss orders. NEVER put your stop-loss at a whole number, it's just way too obvious and way to easy for the middlemen to run you out.
Look what it did to financials at the very same time...
And the 22% financial weighted S&P-500....
I would dare to guess that BAC is being moved off hedge funds positions so they don't look like morons with the next quarter's prospectus. Warren must be VERY happy he capitulated to Obama's request.
In any case, it probably doesn't need to be said, but funds will be looking for ANY strength in BAC to unload before the 27th of this month.
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