Tuesday, January 24, 2012

BAC Short

BAC's run looks like it is ending, it's followed the market as 90% of stocks will do, but seems to have been under distribution while doing so. This looks like an area that may be worthwhile to start building a short position, phasing in using maybe 1/3 increments, just make sure you figure out your full position risk management first.

 BAC has moved with the market, but 3C has shown it to be under distribution on today's move.

 The intermediate trend at 15 min is also negative

And the long term 60 min trend looks like BAC's run is just about done. I prefer using Puts with BAC and holding them for a couple of days until I get a 30% profit or so.

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