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Financial stocks started running higher Thursday after the European Central Bank (ECB) announced it would be leaving interest rates low well past the end of this year and that it would be maintaining its current quantitative-easing (QE) program, and they haven’t slowed down since.
The House of Representative’s passage of the “Financial Choice Act” (which looks to roll back much of the Dodd-Frank financial-overhaul law) has also given big banks a boost. This news appears to have sparked a rotation out of some of the more conservative sectors — like Utilities and Consumer Staples — and back into more aggressive sectors — like Financials. This is a good sign for anyone looking for bullish confirmation on Wall Street.
With the Financials running higher, Bank of America Corp (NYSE:BAC) still has room to rise before hitting resistance at $24. We expect the stock to hit some resistance at this level, but we wouldn’t be surprised if it climbs above $24.
‘Buy to open’ the BAC July 24 Calls (BAC170721C00024000) for a maximum price of $0.65.
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