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JimVanMeerten (61.58)

Bank of America - Forget it!

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August 17, 2011 – Comments (0) | RELATED TICKERS: BAC

Complete article and graphs:

I normally go with the flow but when it comes to the money center banks like Bank of America (BAC) I'm going to take a very contrarian view.  Money center banks are wildly popular with both the professional and individual investor but a look at the numbers show they do not deserve a thumbs up from anyone.

Barchart technical indicators:

1` - 100% Barchart technical sell signals

2 - Trend Spotter sell signal

3 - Below its 20, 50 and 100 day moving averages

4 - 11 down days and off 28.97% in the last month

5 - Relative Strength Index is 31.04%

6 - Barchart computes a support level at 6.33Closed yesterday at 7.60 which is far below its 50 day moving average of 10.27


Summary: In the case of Bank of America (BAC) wishing won't make it so.  When the analysts' recommendations  are strongly positive but the stock's price action is very negative great caution should be exercised.  Do not follow the herd and buy in to all the Wall Street recommendations.  The fundamental projections have wide fluctuations in forecasts and are based on very unreliable numbers.  The AIG lawsuit will not be the last one.  If you buy BAC you are not buying into great management but are buying into who has the best spin doctors and lawyers.  Take a pass on this one and look for the companies that have stable and growing sales and earnings.

Jim Van Meerten is a Marketocracy Master

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