This was originally posted last night but with the stock down another 8% I thought it should get a wider audience.
The stock is down 74 cent (8.38%) at $8.09.
For cryin' out loud it was only July 21st when we posted it.
Here's the link.
I bring this up because, with the stock down 7.4% to $8.88 today I was asked "How far can it drop?"
Houston we may have a problem.
Here's the chart for March 2009:
If I may direct your attention attention to the bars for the 9th and 10th there is a gap where the stock closed at $3.75 on the 9th and opened at $4.35 on the 10th.
That gap has never been filled.
I had sworn to myself that I would not ever speak of this, it sounded outlandish even to me.
Not all gaps fill. As I said in October '09's "Equities: Well We Filled the Gap in the S&P 500 Chart"
It is almost uncanny how many times a stock or index makes a gap up and then comes back to fill the gap before resuming the move. In this case S&P 1073 or thereabouts.And it may not fill on this go-around.
On the other hand, I knew an old-timer who spent much of the eighties waiting for the Dow Joneses to fill a gap in the high 500's that dated from 1974....
We are expecting the ultimate market bottom in 3-4 years, it may be the next big bear before BAC see's $4.
But now you know.