The Banking Crisis and the Bank of America Corporation
Updated
Introduction
The Bank of America Corporation is one of the most famous of Warren Buffets holdings. It is right behind Berkshire’s Apple holdings in size and it has only grown during the recent banking turmoil. This is while he is “dumping” other banks because of red flags in their financials. That is beginning to look like a bad decision based on the technical of BAC.
Source:
markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-bank-stocks-sales-portfolio-banking-crisis-2023-4
The United States and the world appears to be facing a very serious financial crisis and we are in the stages where equities are still slow moving. The real impulse will begin when a lower timeframe rally is shorted and the news gets apocalyptic. BAC is ultimately on the chopping block.
Analysis
This is a pared down version of my momentum charts where I try to get the most out of a trend by riding the impulse. As such I don’t have a trade on because price has not slipped the 200 yet. If you want a full breakdown it is in the linked idea on Matic and Solana. Now, due to how fast bank failures can happen I might miss this trade being to patient.
The MACD and Signal are below zero on the mothy. That is bad in itself. Price has slipped the 50 month, that is also bad in itself. Both of these things have occurred as BAC is dropped out of a falling wedge. Also very bad. BAC has also set a lower high from the high before the 2008 financial crisis. That is catastrophically bad because it sets BAC either a W bottom or an ABC correction. The W is shown on the main chart and the ABC correction is shown below.
The wider view
A banking crisis is the apparent reason bitcoin was created in the first place. It also lead to a pump in silver and gold once there was a “paper” decline in price. I remember reading the news stories from the 08 crash were people were selling their precious metals for wide margins on eBay and other platforms while the exchanges were selling silver derivatives for cheaper and cheaper.. As such, another banking system crisis should see the anti-fiats begin to pump once the thrash has happened. I would expect a massive risk off situation but somehow bitcoin and other cryptos look bullish. If is a very schizophrenic time to being doing TA. It is also a crazy time to trade. I don’t know if I will be engaging in capital destruction because of bad trade or just because my exchange collapses.
Most likely I will buy the dip in paper silver and ride the gains up. Dark times with a silver lining.
The Bank of America Corporation is one of the most famous of Warren Buffets holdings. It is right behind Berkshire’s Apple holdings in size and it has only grown during the recent banking turmoil. This is while he is “dumping” other banks because of red flags in their financials. That is beginning to look like a bad decision based on the technical of BAC.
Source:
markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-bank-stocks-sales-portfolio-banking-crisis-2023-4
The United States and the world appears to be facing a very serious financial crisis and we are in the stages where equities are still slow moving. The real impulse will begin when a lower timeframe rally is shorted and the news gets apocalyptic. BAC is ultimately on the chopping block.
Analysis
This is a pared down version of my momentum charts where I try to get the most out of a trend by riding the impulse. As such I don’t have a trade on because price has not slipped the 200 yet. If you want a full breakdown it is in the linked idea on Matic and Solana. Now, due to how fast bank failures can happen I might miss this trade being to patient.
The MACD and Signal are below zero on the mothy. That is bad in itself. Price has slipped the 50 month, that is also bad in itself. Both of these things have occurred as BAC is dropped out of a falling wedge. Also very bad. BAC has also set a lower high from the high before the 2008 financial crisis. That is catastrophically bad because it sets BAC either a W bottom or an ABC correction. The W is shown on the main chart and the ABC correction is shown below.
The wider view
A banking crisis is the apparent reason bitcoin was created in the first place. It also lead to a pump in silver and gold once there was a “paper” decline in price. I remember reading the news stories from the 08 crash were people were selling their precious metals for wide margins on eBay and other platforms while the exchanges were selling silver derivatives for cheaper and cheaper.. As such, another banking system crisis should see the anti-fiats begin to pump once the thrash has happened. I would expect a massive risk off situation but somehow bitcoin and other cryptos look bullish. If is a very schizophrenic time to being doing TA. It is also a crazy time to trade. I don’t know if I will be engaging in capital destruction because of bad trade or just because my exchange collapses.
Most likely I will buy the dip in paper silver and ride the gains up. Dark times with a silver lining.
Note
Things continue to look bad for the Bank of America. Price has retested previous wedge support as resistance. For the first couple of days of the new quarter price has slipped the EMA ribbon which is failing as support. As the 2008 circle shows price may retest the EMA ribbon as support before resuming the down trend.Lots of drama is due for the next year. And that is just if we find support on the purple trendline.
If price gets a 1.618 extension then we basically have the complete and total failure of BAC as a company.
Note
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