BA.CD trade ideas
BAC near 50 day support Nearing trendline support at the 50 day MA. It's been keeping this trend for > 6 months. I don't expect anything to change. The $42 calls are not a bad price even for a month out.
BAC TrendLooking at the 50EMA, we see BAC coming back into its monthly trend, catching support at the 50 and rallying 10%. This time BAC fell on extremely low volume while the RSI is also catching support. Financials are still in rotation and will be adding to this position over the week, aiming for mid/high 40s by early July.
BAC (Short it)Rising wedge.
should lose minimum 30%
Grab some August contracts.
JPM in the same position
BAC: Trend violated. So what's next?Investors don't like banks anymore. Inflation feels to be under check or not a concern at the moment and the US10Y on a decline. Interest rates are not going anywhere for now. So there will not be much of a demand for banks.
Today BAC broke below its 5-month trendline and should go back to test the upper channel of pre-pandemic (see the weekly chart). There is a chance that this was a bear trap so we shall wait for a confirmation. Remember the 2 days or 3% rule.
Bank of América Ending diagonal on 4h
Rsi Bearish divergence on 4h and 1d
Decreasing volume while price is increasing
Exhaust signal for me
Correction signal for me
Nice place to buy some otm puts
BACWho do have to petition to make the market 6 days a week? If banks are open 6 days a week so should the market.
Buy at $24Staying above lowest fib for weeks. Buy at $24 wont fall below $20 all month. I use metra trader chart with other patterns also
Elliott Wave View: BAC (Bank of America) Wave 5 in ProgressBank of America (BAC) has just made a 12 year high and structure from February 1, 2021 suggests the rally is unfolding as a 5 waves impulsive Elliott Wave structure. Up from February 1, wave 1 ended at 39.97 and wave 2 pullback ended at 36.63. The stock rallies higher again and ended wave 3 at 42.94 as the 45 minutes chart below shows. Pullback in wave 4 completed at 40.78.
Internal subdivision of wave 4 unfolded as a zigzag Elliott Wave structure. Down from wave 3, wave ((a)) ended at 41.37 and bounce in wave ((b)) ended at 42.56. Last leg lower wave ((c)) of 4 has completed at 40.70. From there, stock has resumed higher in wave 5. BAC has broken above wave 3 at 42.94 suggesting the next leg higher has started. Up from wave 4, wave (i) ended at 42.48 and pullback in wave (ii) ended at 42. Wave (iii) ended at 42.85, wave (iv) ended at 42.57 and wave (v) ended at 42.95. This should complete wave ((i)) of 5 in higher degree.
Wave ((ii)) pullback is now in progress to correct cycle from May 13 low before the rally resumes. As far as May 13 low pivot at 40.70 remains intact, expect dips to find support in 3, 7, 11 swing for more upside.
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BAC is almost ready for a short setupLooking for a first breakdown signal. There is a major bearish divergence on daily chart. Ready for pullback any time soon
If you want any ticker analysis, let me know
Fundamental Friday - BACFundamental Friday (BAC):
Gallacher's Fundamentals:
1. Select historically "Cheap" or "expensive" markets.
- BAC is within uncertainty range level 1.
- Financial sector is cheap, relative to tech. BAC has an 18.19 PE ratio vs 585 PE ratio of TSLA.
- BAC is neither cheap nor expensive relative to rivals in the financial sector (JPM, GS, by RSI).
2. Develop a critical eye for what is "important" fundamental information to a particular market.
- Important fundamental information in the financial sector is the longer-term Treasury yields, which I expect to rise this year. Long inflation.
- Macro trend in Quad 2, excess capital generated will be used to buy back shares.
Get (1) neutral, (2) bullish, or (3) bearish:
- Bullish
Some Warren Buffett Tenets:
Is management rational?
- BAC’s Brian Moynihan expects the bank will increase its dividend and boost its share buybacks once its passes its Fed stress tests. Last month, it announced a $25Bn share buyback plan with its excess cash.
Focus on return on equity, not earnings per share.
- ROE on a rising trend, 7.58% from 6.14% last quarter.
Calculate “owner earnings.”
- Owner Earnings = Net Income + Depreciation, Amortization +/- Other Non-cash charges - Full Capex +/- Changes in Working Capital (Assets – Liabilities or Shareholders Equity)
- 17.1B + 2B – 6.2M + 16.2B = 34.7B/8.7B = $3.99 owner earnings per share.
- Price to owner earnings: Current price = 42.36/3.99 = 10.62, vs. 18.19 PE Ratio (TTM), this is undervalued in the short-mid term.
Look for companies with consistent and high profit margins.
- Profit margin of 0.18 vs 0.1396 historical average (increasing trend).
GLHF
- DPT
$BAC Short-Term Swing Idea Bank of America has been on a uptrend while the markets been volatile. I like the support at the 200 MA and it seems to be following well with the pitchfork. Decent R/R here as long as you have a tight CL. Also looks like there's been some increased interest in this stock.
Buffett, a share buyback and over reserved - roll the putsI sell and roll a BAC put vertical monthly. This has been a very good strategy for the options trader.
The company has a large share buy back in place.
Berkshire Hathaway has been given permission to expand to 15% of the common stock.
The company is over reserved and likely with earning tomorrow will report the actual amount of reserves released to the bottom line as earnings.
I sell cash secured put verticals on the stock and routinely roll these forward. Likely the day after tomorrow I will be able to buy in the 40/37 strike put vertical and sell the next months options keeping some cash and rolling the risk forward by one month.
As usual the cash goes into GGN or BPT. One is an oil and gas portfolio. The other is an oil trust.
I like my chances.
