Bank of America (BAC) from a technical standpoint is ready to run…..short-term this should see the mid teens and by end of year…if not sooner, we should see 20s. Why am I convinced?…housing will bottom soon based on improving anecdotal data from the biggest problem markets such as Cali and Florida.

One can argue about Green Sprouts and other gardenesque jargon, but simply put.. this has been a major dog of the dow and has not moved like its bank brethren because of the massive certificate printing operation it embarked on to meet the stress test quota ($33.9B). Now that the presses have stopped, we can gain some upward traction. 

I just think the estimates are way too low. Reverend Cramer has backed up the truck on this one and jumped on his soapbox shouting “BUY, BUY, BUY”. It closed at $12.97 today, do your own DD.

We should see some traction as the July 17 earnings approach!



Long BAC

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I know I must sound obsessed or like a raving lunatic, but man…a bankrupt company  “the old GM” rallied for a second day in a row…up almost 16% today, wow. Regardless of this, one should always be disciplined and I say no thank you to returns if GM is involved.

I still have my Wells and Monday, June 8 is the big day. The “plans” have to be submitted to govt as to how they are going to raise stress test money.. Oh boy, showtime! They have already raised some, but lets see if the govt is ok with using future earnings as a part of requirement.


Long Wells Fargo, all others none.

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As amazing as it seems, GM has left the Big Board and is on the OTC under the ticker (GMGMQ.PK). It is still rallying higher…up 20% today. I just cannot understand why this thing trades or who the heck is buying it. I guess whoever is trading this thing is just playing a game of musical chairs hoping to have a seat….cause this thing has no viable corporate entity behind it…pure CRAZY.


No positions in GM

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Wells (WFC) is a great play for the housing bottom and numbers today were good. On the flipside, it still has to work out finalized stress test plan and maybe TARP repayment.

I placed a very tiny position on Wells today. I have  strong suspicion that they are going to do another offering in near future…saving my powder.


Long a micro position in WFC.

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Paddles, clear…..Time of Death 8:00am…

The big day is here for GM, bankruptcy heaven…despite that, the stock is showing great resiliency powering up on the news…who knows why, short covering?

Anyway, Mr. Cisco got its VIP card to the DOW and heck even big, bad Citibank got its privilege’s revoked for running up its balance on its TARP VISA card.

No positions in C or the dearly departed

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