BAC – Missed Opportunities

I was eyeing BAC yesterday afternoon because of the enormous positive divergence on the 60 minute chart.  But that would be a counter-trade on the proprietary long term selling signal.  My conviction in the BAC trade even prompted me to place an order on its Dec 5 call, albeit it was a low ball and never got filled. BAC closed yesterday at 5.08.

After hours S&P downgraded some 37 banks including BAC.  I thought I was close in getting the bait and fell victim of jinx yet again.  But behold, aside from a brief dip below 5, the price recovered and settle at 5.08 — that was some MESSAGE!  I told myself, that’s a big show of strength.  But my greed and fear dismissed even the idea of a small token position.

This morning China lowered its reserve requirement to increase the pace of growth, and the Fed agrees to swap dollars with the EU debts.  The WHOLE market jumped.  Premarket was up nearly 3% on SPY.  And look at BAC’s last trade show on the top of the chart: 5.39, up 6%!!  The jinx prevailed after all via a boomerang.  That certainly hurts, that’s why I am typing away as the market opens right now so I don’t do anything emotional and stupid.

Oh, also look at the 5 minute chart below.  Yesterday I was waiting for the bottoming confirmation after it attempted to backtest the low, resulting in higher low.  Too bad we ran out of time.

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