Big Bank Fall Hard?

We were watching Bank of America (BAC) on Tuesday, expecting to see the stock drop, but a brokerage upgrade pushed it higher most of the day. The stock rallied before the east coast lunch hour, but could not hold up and finished the day at lows. The stock gapped down last Friday, after they reported earnings. BAC is breaking below the gap low and should break down once it can break the $17.00 price level. We see a possible drop to at least $16.00, if not lower. If BAC does not hold the $16.00 level, there should be nothing holding it back from a quick ride down to $15.00. We like this short in BAC as a day trade as well as a possible swing move if it breaks down and closes near lows.

Two of our favorite upside picks are ROVI and PALM. Check out their charts for Wednesday.

You can see these 2 picks, plus many more on our free daily watch list at http://www.todaytrader.com/watch.html You do not have sign up, just click on the watch list word on the left side of the page. No registration is required.

This is not a solicitation or recommendation to buy or sell. These are stocks we are watching for traders. We may or may not trade these picks and do not make any guarantee of success. Commentary of these stocks is for educational purposes only.

Mickey Welcher is President of Spectral Asset Management LLC and works with Today Trader. He has extensive trading experience and money management for clients. If you have any questions, please contact him at mickey@spectralam.com