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Time to Sell: Bank of America Corp NYSE:BAC

Profile: Bank of America is 1 of the largest financial institutions in both the United States and the World, with lending operations in the consumer, small business, and corporate space, in addition to asset management and investment banking divisions. The company has operations in all 50 states. Its Global Wealth & Investment Management segment provides brokerage, banking, and retirement products; wealth structuring, investment management, trust and banking needs, and asset management services; and institutional and personal retirement solutions. As of May 12, 2012, the company served customers through a network of 5,700 banking centers, 17,750 ATMs, call centers, and online and mobile banking platforms. Bank of America Corporation was founded in Y 1874 and is HQ’d in Charlotte, North Carolina.

Website: http://www.bankofamerica.com

Institutional trading of Bank of America Corporation shares yielded a bought/sold volume ratio of 1.16.

A total of 2,662 block trades crossed the tape Tuesday, resulting in 30,927,199 shares on the Buy side Vs. 26,733,823 shares on the Sell side.

From a cash flow perspective, this implies that there was a cash inflow of $346,571,785 and a cash outflow of $299,352,496. The net cash flow for BAC is $47,219,289, signaling that institutions likely have positive outlook on BoAs stock, however that is not the case.

A deeper look into options trading tells us that traders hedged their positions with options where 222,009 Put and 672,285 Call contracts exchanged hands giving a 0.33 Put/Call Ratio PCR.

Shares of BAC opened Tuesday at $11.24 and finished + 0.36 to 11.36 on the day.

Shayne Heffernan said “Bank of America Corp NYSE:BAC is looking a touch high at the moment, at 27 times earnings, for now it looks ready to move back in to the $7-8 dollar range. Anything close to 7 would make BAC a long term buy.

A recent upgrade gave BAC a lift but based on the financials, the impact of Dodd-Frank and Volcker I have trouble getting excited about the stock moving forward from here, the tock should settle in a lower range before moving forward, consolidation is overdue.”

The day’s trading range was: 11.05 and 11.36.

Volume: 253-M shares were traded, that is greater than the 3 month average volume of 149-M shares.

BAC is trading above its 50 and 200 Day Moving Averages.

The technical momentum Relative Strength Index RSI indicator shows Overbought conditions.

The 52 wk trading range is: 5.04 -11.00.

The stock has a P/E ratio of 29.73 and a dividend yield of 0.36%.

Next Earnings Date: 17 January 2013

Analysts Recommendation: Buy

1 yr Price Target Estimate: 15.00

Performance Metrics

Week Month Quarter Half Year Year

+4.07% +21.15% +15.30% +39.59% +111.54%
Analysis Overall Short Intermediate Long
Bullish (0.45) Bullish (0.47) Bullish (0.43) Bullish (0.44)

Recent CandleStick Analysis Neutral

Open Gaps
Direction Date Range
up 18 Dec 2012 11 to 11.05
up 17 Dec 2012 10.6 to 10.64
up 5 Dec 2012 9.91 to 9.95
up 19 Nov 2012 9.21 to 9.32
up 7 Sept 2012 8.35 to 8.45
up 6 Sept 2012 8.02 to 8.03
up 3 Aug 2012 7.26 to 7.27

Support and Resistance
Type Value Conf.
resis
supp

NIL
10.99

0
3
supp 10.60 9
supp 9.91 12
supp 9.58 8
supp 9.18 7
supp 8.99 2
supp 8.81 3
supp 8.29 7
supp 7.96 6
supp 7.48 2
supp 7.26 2
supp 7.12 2
supp 6.94 2

Technical Indicators
Ind. Short Inter Long
EMA VBu VBu VBu
MACD VBu Be N
RSI N
TDD Bu
Fibs VBu VBu VBu
Highs Bu N N
Lows N VBu Be
Trends Bu Bu VBu
Stoch. VBu
VBu=Very Bullish, Bu=Bullish
N=Neutral
Be=Bearish, VBe=Very Bearish