B of A Bulls: Ask Chip Diller What the Future Holds! ~ The Risk Averse Alert

Thursday, August 13, 2009

B of A Bulls: Ask Chip Diller What the Future Holds!

Like all equity, Bank of America's (NYSE:BAC) appears to be well on the road to becoming dead money. Let me show you why I believe this...

company chart (BAC)

Last July (2008) BAC volume markedly picked up as the stock bottomed. During its subsequent screaming counter-trend rally — a massive short squeeze — beefy volume registered at its start was even exceeded at its end. Truly the work of strong hands, the likes of which whose BAC holdings probably netted well north of $30 per share.

Fast forward Q1 '09 ... and another high volume bottom. This time strong hands were accumulating shares from many a nervous Nelly.

Then, after anywhere from a 100-400% gain was realized, what did strong hands begin doing from mid-April through early May?

That's right... They said, "Here Shemp, have some BAC to go with that prescient June 30th real estate bottom call of yours!"

And since then, what does Mr. Risk Averse make of still elevated volume (though considerably diminished from May '09 peak readings)? What does the future hold for BAC bulls?

Well, let's ask Chip Diller...

Fast Money
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