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This just shows you how little these news reporters know about the market. First, no professional trader uses the dow as the barometer of stock market health, its either the spooz or the small caps.
Second, you don't report how many "points" the market has moved, since is all relative based on how where your currently trading. Its has to be percentages. I remember the drop where the dow lost about 1000 points( when the algo's went off and we had a huge drop in a matter of minutes last year), and they reported it as the biggest drop in history. WRONG, check the crash of '87. Lost about 20% in one day.. now that sucks.
This post has nothing to do with screentrader, just venting about news stations and how they try to create panick.
The problem with midas it requires a starting date, I noticed you took the LL March 09. It will also slighty change if you change the time frame. If everybody is taking the same anchor point with the same setups, it than makes sense to me.
I was amazed by your curiousity (almost morbosity) to see BAC and C's future go chapter 11. BAC has one of the strongest balance sheets among US banks:
- 140 B$ cash
- 300 B$ in securities
- 126 B$ in tangible equities
- 206 B$ in equities
- More trading assets than trading debts
- More derivative assets than derivative debts
- Not much exposed from EU sovereign debts
From fundamentals is BAC 6.51USD a fair share price?
Personally I don't care about BAC and C but I am worried about the consequences a bailout would bring to the US and global economy. Last but not least, with all this cash available, who is going to cash in the markets volatiliy ? Like it or not it's always the same story, I think there is enough to fight any law suit.
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Let me clarify by saying it's possible they could fail but not a guarantee. This is based on a variety of factors most importantly their CDS pricing. As for their assets and liabilities. It has been proven that there assets are extremely overstated, their liabilities have been understated and their book value is grossly wrong all through the assistance of loose accounting rules all approved by the FASB.
I don't mean to create a heated debate or anything as this is just my and a large amount of Trader's on Wall Street's opinion. During trying times and chaos, the bad assets seem to find a way of showing their ugly little heads. Take 2008 for example. We'll see if they have enough cash to fight the long line of lawsuits because again the CDS pricing states otherwise. But politically, another round of bank bailouts will be met with extreme opposition. That's why this is getting so interesting. By the way, I've been short BofA's stock since March, so I guess that would explain my bias.
Cheers,
PB
Update: Dick "Lehman Bros" Bove just recommended BofA as a good buy at these levels. Deja vu? Lol!