Market news has been disappointing and foreign markets have gone down even further. The market conditions are still suitable to bears.
Key market levels to watch is the DJI 9,500 level. Watch that level cover your shorts when the DJI is at around 9,550 and if the market has a 100 pt penetration to 9,400 you can enter another short position.
The key level on BAC is currently $16, and I expect a quick snap up towards the end of the day when professional traders, and institutions start buying up BAC.
The major institutions might buy towards the end of the day most professionals have been dumping their positions out of lack of confidence and extra information that we the small individual traders don't have access to since we don't have lobbyists, bribe big whigs in government, and etc. So trade with pros not schmucks the same pros that make money never leave wall street and theirs a good reason for that. The money is always transferred to the same pros and each cycle that goes by the pro's become more and more powerful in capital, backing, and information resource.
Wait for the markets to rally towards the end of the day and position your trades with professionals willing to take their trades overnight. The big wall street players will buy towards the end of the day, they always have better data and insider info we won't have access to. They, will be our leading indicator.
YOU SHOULD BUY in this circumstance:
If BAC goes near the $16 level towards the last 3 hrs of tomorrows trading session fast stochastic and RSI severely oversold and the -DMI on the Directional movement index starts to trend downwards. Along with major blocks of shares being bought towards end of trading session.
SELL IF:
IF BAC breaks $16 and -DMI trend even higher as people start selling off towards the end of the day from 2PM EST onwards if a sell off occurs join in with some short term shorts and cover by 3:30PM EST and you should make decent profits.
Also note that if BAC breaks $16 know that all hell will break loose because BAC is now on a down trend. Which means you can start buying shorts at $16.10 and start covering when BAC gets near $14 or $15. Make sure you put a stop at like 16.30 and make your cover target at 15.20 for a 4:1 profit ratio or so.
Note* the market might spike in the early morning session but don't be fooled, those are sponsored by amateurs with no real capital to lead a major rally. I don't trade with amateurs and neither should you. I look to professionals and major market movements from the big wall street players to determine my decisions. It's called deductive reasoning. Use it to your best ability. If the market can keep it's gains through out the day you may want to consider buying some stocks like BAC for value.
YOU COULD LOAD UP ON VALUE IF THIS HAPPENS:
IF the DJI collapses in the morning and BAC stock price collapses immediately at opening start positioning yourself for either a cup and handle position or a double bottom. Make sure your ready to buy up a major dip if the open is extremely ugly. You can bottom feed as well. Where can you bottom feed at? Below $16.00 is fair game. It might even hit $15.00 it might take a while to earn back the money if the market goes even lower or it might be earned back immediately. Keep a close EYE ON THE DOW it determines general market psychology as well. Remember below 8,400 means that BAC can easily hit $15.00-14.00 and you can back off until it hits the $15.00 level if this is occurring at opening bell on the NYSE.
which I'm pretty sure it will be I'll give myself a big pat on the back