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.
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
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