Bank of Hysteria....Anyone care about RSI values anymore?
Nearly all of the banks have RSI near or above 70% indicating critical status.
Wachovia has now come out and said "hey! Stop!! Market Perform!! Underperform!!" on several banks except for the outperform rating to Goldman Sachs.
This is ludicrous.
I personally didn't rack up tons of shares of Bank of America at single digit prices for a quick buck.
I got into Bank of America for the long term value of owning a bank stock period.
The financial sector belongs in a portfolio just as much as a good Beverage Company (HANS) (DPS) (KO) (PEP) Wim-Bil Dann.
The traditional value of Bank stocks has always been that they tend to be really good dividend payers during good times. Sure, dividends have been slashed to almost ZERO across the board except for the strongest banks that have the least amount of Toxic waste (TCB) (GS) (WFC).
But, eventually the bad banks (C) / (BAC) will start increasing their dividend payouts. Might be 5 years from now.. Might be 2 years.... Eventually....
But, I guess Wall Street doesn't want us long term investors to gain thousands of shares at ridiculously undervalued prices....so the Share price escalates in less than 1 month to double digits for Bank of America. Quadruple.
Tons of people are out there screaming bloody murder on the banking sector because the share prices have gotten way out of hand..... They no long reflect the "Past" and thus don't reflect the Toxic Waste the banks still have on their balance sheets.
But, I agree with the negative sentiment... It really does not make sense to have any stock trade up day in and day out with much of a Pull-back in between.
The RSI can only stay above 70% for so long before the stock comes crashing back down to reality. The reality is Bank of America 2007 is going to be quite awhile yet. If Wall Street can only ignore "Valuation" for only so long...
I don't expect much of a pull back.. I'm not asking for much. Drop the thing down $2....$1.75....
Oh.. I'll take 25 cents!
Course in all seriousness.... I am completely avoiding APRIL in terms of buying any more shares of BAC. I want to see how the pricing starts behaving after April 20th's earnings release and conference call.... I want to hear that conference call to get a better handle on things.
I agree with an ALL STAR that back at $6 a share or so said that BAC should be priced at $14.00 a share. That's fine.... But I want the conference call and earnings release to confirm that.
Roughly $13.22 is approximately ZERO for BAC..... That means year to date BAC trades with no drop or increase in price year to date. That's a resistance level that should be a Mack Truck for optimistic Wall Streeters to really think about before buying and buying and bidding BAC up further.