The Chart du Jour

B of A: a Zig Higher to Be Faded

June 13, 2001

By, Barclay T. Leib


Chart produced using Advanced GET End-of-Day

J.P. Morgan has fallen over 12% in the past six trading sessions; Morgan Stanley is down slightly more than 10%; and GE had fallen approximately 5% over the same period of time into Monday's close, only to launch a fairly mean outside-day reversal higher Tuesday.

Is Tuesday's GE reversal sustainable? Looking at other financial sector chart patterns (yes, GE is a financial stock in our opinion since they have more than 50% of their income derived from GE Finance), we find the chart of Bank of America. Looking at its current formation, we doubt any stock within the financial sector will find long lasting upward sea legs at present.

But wait a minute, you might say, despite financial sector weakness elsewhere, Bank of America has recently been rallying. Yes it has -- to date. But in the chart above, we see a stock bumping up against strong overhead resistence in the form of its 200-week moving average. We also see a Fibonacci rhythm that suggests $31 as a longer term target here.

Now B of A may not have a derivatives book the size of JP Morgan's to worry about, but I would hazard to guess the bank certainly has a bigger exposure than Morgan to residential and commercial California real estate -- another knock-on dominoe just starting to fall apart after last year's tech wreck.

Some people may be attracted to B of A because of its relatively modest 13.8 p/e ratio, but for our money it's a trading sale with a stop loss set on a weekly close above $62.

Lastly, readers and new subscribers are asked to grant us a bit of slack this week. We will be travelling from Monday to Friday, and may or may not have the opportunity to update this site as much as we regularly do. Subscription requests will get filled, and instant access to recent subscriber-only articles is still available, but our confirming e-mail with password details may dally. Our apologies in advance.


Non-subscribers are invited to sign up for a quarterly subscription below. Sand Spring's latest "pattern match" thoughts of the June 1 Chart du Jour, plus our May 28th analysis "The Importance of June 2nd," as well as our May 5th article "Expert Short Picks," will all be accessible via an immediate e-mail. A user-id and password for web access to all past and future articles will then follow by a separate e-mail.

It may also be of interest to some that because so much time (and thus timeliness) has now transpired, we recently released three of our 2000 subscriber-only articles. These now appear under the public Earlier Articles section of the website. Perusing through them may give one a sense of the added premium level of analysis we provide to subscribers.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright 2000 by Sand Spring Advisors, LLC, Morristown, NJ