Thursday, 16 June 2016

BAC - low rates remain the problem

With the Fed too afraid to raise rates, the financials remain under broad downward pressure. Bank of America (BAC) settled -0.3% @ $13.30. Unless the market can break up and away to new historic highs.. with the Fed raising... BAC looks set for much lower levels as the summer proceeds.

BAC, daily

BAC, monthly


Relative to Deutsche Bank (DB), BAC is holding together pretty well.

Seen on a giant monthly chart, BAC remains broadly weak, stuck under the 10MA. Next support is the Feb' low of $10.91, and then the psy' level of $10.00 itself.

If the main market implodes to the sp'1600s or lower, BAC will be trading around $5.00.

... eyes on the EU systemic risk that is DB... as if that implodes... the rest of the financials will be rocked... much like 2008.

*I like BAC for the long term... but only if US growth starts ticking upward... along with interest rates. In the short/mid term... that simply doesn't look likely.