Tag Archives: bac

BAC Settles With Fannie Mae and Freddie Mac

Now that a lot of this put-back crisis is being resolved through settlements, like I expected, the key thing to watch now is the whole Wikileaks threat.

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Technical Indicator: BAC

You can see the head and shoulder pattern labeled on the chart.  This head and shoulders pattern is a bearish signal as there have been two lows with support (the 1st shoulder and head) and the 2nd shoulder is slightly higher than the first, indicating an upward movement.  With the break in the neck today, I hope to see a strong bullish movement in the next several days or weeks, but I am cautious when I look at the Relative Strength Index (RSI) below.

Assange Taking Down Banks?

Julian Assange was interviewed briefly by a correspondent from CNBC today and revealed that Wikileaks was going to release documents on one major bank by January 2011.  Though Assange has not claimed which bank he is referring to, Wikileaks supposedly obtained a hard drive from a Bank of America executive in October 2009 and many believe this is where the documents are from.  Assange also went on to say that banks around the world were “attacking” Wikileaks, but did not elaborate.

In my opinion, I do not see any threat coming from Assange’s comments.  As I have said prior, the financials have already been beaten down to where their stock price was less than there book value.  Unless Assange has evidence that some executive was secretly conducting sacrifices to please the profit Gods, don’t get your hopes up that banks will fall.

BAC Ready to Take Off?

In after hours trading, Bank of America announced it was entering initial settlement talks with several mortgage investors who want BAC to repurchase some of the $47 billion improper mortgages sold to them.  This has been an ongoing problem for the financial industry who have been beaten to a pulp by the media and government for unethical foreclosure processes.  Now that this issue could be behind BAC, nothing is truly holding this stock down to its 52-week lows.  Expect it to break resistance at $13 by years end?  There’s only one thing I want for Christmas…