Word To Your Mutters...

In the Confessional Booth here and... I got it all wrong with BAC! I own up to it, but it doesn't stop me from being upset. What I'm most upset about is not the fact that I let fear override logic, but the fact that I didn't believe in myself enough. I took the emotional approach. I did the analysis, but I went with my feelings. Based on today's price action, I made the wrong choice yesterday with BAC.

My portfolio has been comprised of mainly financial sector stocks since Lehman hit and I wasn't scared before, so why am I scared now?

But most of all, here's what I think went wrong analytically.

1. Price Action. There was resistance at $11.87, but price wasn't breaking at $11.50. In hindsight, this could have just signified a buyer stepping in who won't pay above a certain price. If we saw any further price declines below $11.50, then I would have been spared instead of seared. As of now, I missed out on at least another +4% gain. Now that's lame...
2. Three fundamental shifts in the market: 10-Year Treasury Yields moved up sharply yesterday to close above a 3% yield; optimism due to tax breaks from our FWFOCH; plus Nikkei continued to hold its own above 10,000.

I failed to see what I'd been wanting to see all year - that exodus from the bond markets that would signal the potential beginning of another bull run, but hopefully it'll be a lesson learned. Given the one step forward and three steps back we've been seeing all year, I may just be setting myself up for more disappointment, but we're Generation Y... we're not just pie in the sky!

So I'm still going to try to buy BAC at $10.50, though I might do better looking into some other stocks that are still trading close to their 52WLs. Let's see!

+0.28% on the SBA
+0.82% on the Roth IRA

Oh, so close! Nikkei beat my Roth IRA by 0.08%...

Up tomorrow... earnings announcement from my honey bee, Harry!