Inside the Wizard’s Hat with BAC
I have a good friend, a hedge fund manager, who refers to the market charts for period from February 12, 2009 to March 26, 2009 as “the upside down Harry Potter hat.”
During that period the S&P 500 made a stunningly rapid descent from 833, to 676 on March 9th, and then recovered by March 26th.
This is a trading formation that I had never seen before to the same degree, nor had I ever heard that moniker applied to it, so I credit my friend (anonymously in print however) for originality.
Extending the metaphor, Bank of America is today well back inside the wizard’s hat – trading for a price it last saw on March 12, 2009. What incantations from the Fed or elsewhere can be said over the bank at this juncture to have it re-emerge? Or are we just in the process of getting to the point?
The fault, dear Brian, is not in the Stars, but in the Assets. [Apologies to the Bard.]
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