With the markets panicking over the possible default of the United States, stocks are scary but cheap. When the debt ceiling is raised, a big rally will take place. The key is to be in positions that will reward you with big profits. Ultimately, the debt ceiling will be increased by the time August 2nd hits. The politicians will not risk their future careers by letting it go past. This means it is currently one of the greatest short term buying opportunities in the stock market.
Bank of America Corporation (NYSE:BAC) has the chart and trading history to be a big mover on any deal. The daily chart shows a beautiful bullish consolidation pattern here at $9.80. The stock bottomed recently and ever since has been one of the strongest in the market. This retrace gives buyers a second chance to catch this lightning in a bottle.
The bank stocks have all been under pressure over the last six months. However, recently they have outperformed. This tells smart Wall Street players that the financial plays are the place to be when a debt ceiling extension is completed. Other great plays would also be Morgan Stanley (NYSE:MS), Goldman Sachs Group, Inc. (NYSE:GS) and Wells Fargo & Company (NYSE:WFC). Take the seven day free trial of the Research Center
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Chief Market Strategist