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Friday, March 6, 2015

$bac - anatomy of market inefficiency and idiocy

Composition of a market: Innovators, imitators and idiots.

1. On Feb 26th, bac issues its 10K. Analysts chose to focus on highlighted risks do to reg changes spelled out in its general risk section. Catalyst was a UBS analyst, and the imitators and idiots that followed blindly.

2. BAC sees a 2 day 5-8% decline.

3. BAC passes test.

4. Jobs number way better than expected and unemployment at 2008 lows.

5. BAC recovers.



Future: with stronger jobs and r.o.w economic stimulus, economic trends favor BAC. BAC should be trading between mid 17 to low 20s!

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