Blind Leading the Blind: Morgan Stanley Downgrades Bank of America
- Posted by JC Parets
- on October 27th, 2011
Shares of Bank of America are soaring today on news of Morgan Stanley’s downgrade of $BAC to “Equal weight” from “Overweight”, whatever that means. You have to laugh at this kind of stuff right?
I suppose, that in theory, this is negative news for $BAC stock. When a stock can’t go down on bad news, I take it as good news.
I realize there is a ton of news coming out of Europe that has an impact on all stocks, not just Bank of America. But on news of the downgrade, $BAC is up over 7% as of this writing. This means that today, it is outperforming $XLF $WFC $USB $BK among many others. Underperforming, however, relative to Morgan Stanley ($MS) today, which is up 15%.
All joking aside, I have to take this action in Financials as constructive. Big Gap up today in $XLF out of this range. A little back & filling here is welcome.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
- Eagle Bay Capital Managed Assets
- They Hate Cotton Right Near Historic Support
- Financials Are Breaking Key Support On a Relative Basis
- The Problem That I See With Silver
- Words of Wisdom From Jim Rogers
- Watching Micro-caps to Gauge Risk-Appetite
- Here’s Why There Is A Trade In Corn
- Fox Business: S&P500 On Multiple Timeframes
- Which is the Best S&P Sector to be Overweight?
- Materials Look Attractive on a Relative Basis
Archive by Year