The Bank Trade

Another round of Doctor appointments has hampered my posting of trades.  Hopefully I’m done for the week and get back to the nitty gritty here.

In any case, Bank of America announced after hours tonight their intent to repay TARP funds within the next fews days via convertible share issuance and cash on hand payment.  While I have absolutely no idea how the market will react, initial after hours trading pushed the stock [and XLF] higher.  For anyone like me with no position, you will note that BAC [and for that matter XLF] has formed a triangle and a break higher or lower with increased volume should run for about a $3.50-4.00 swing trade [$2.50-3.00 for XLF].  Time in the market about a week.  Place your stop above/below the breakout/down area to limit capital risk and happy trading.

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