Financial Formations

I wanted to share with you three of my existing positions that are in the financial sector.

First is Sallie Mae, known these days as SLM Corporation. It had a huge topping formation, plunged during the financial crisis, and spent years climbing its way back up to its failure point (red line). Now that we’re there, it’s vulnerable.

slopechart_SLM

Next up is Banco Santander from Brazil. It had a severe gap down (red horizontal line) to which is almost recovered. The company’s web site is here.

slopechart_BSBR

Lastly is a name we all know, Bank of America. I find this chart fascinating, because three years after the financial crisis was over, this organization was approaching the depths seen in late 2008. (I remember well ZeroHedge referring to them snidely as “Bank of 4-merica” which, typical for ZH, was actually an amazing buying opportunity before a multi-hundred percent game). Anyway, it’s been rangebound for months, and I’m banking on a breakdown beneath that range.

slopechart_BAC

At the moment, I have 41 short positions and 25 others waiting in the wings.

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.