Monday, 14 November 2016

BAC - already in the $20s

Whilst the broader market closed rather mixed, there was continued super strength in Bank of America (BAC) settling higher for a fourth consecutive day, +5.6% @ $20.09 (intra high 20.20). Today was the highest level since Nov' 2008. Mid/long term outlook is bullish to 25/26.

BAC, daily

BAC, monthly


Last week's break above the $18 threshold was very significant, and it bode for a run to the $20 threshold before year end.

Frankly, even I'm surprised to see BAC already hit $20... and its still only mid November.

Regardless of near term cooling - which is a serious threat after a ramp from the low $17s, the broadly outlook is strongly bullish, as US int' rates are set to increase. Higher rates ARE bullish for the financials, and indeed the broader economy/market.