It is all about stock picking in 2012 instead of being long/short the overall market when all asset classes were rising and falling in tandem. In 2011, the markets could not rally without the banks. In 2012, this has not been the case as the banking sector has been one of the best performers. Bank of America (BAC) is up over 40% since January 1st. It closed up 3.44% to $8.12 today. It found resistance at $8.15 in afternoon trading which is the R3 pivot point and a few cents away from the 200-dma at $8.18. Citigroup (C) also traded higher today and closed up 3.51% to $34.23. Citigroup, Wells Fargo, AIG, Goldman Sachs and U.S. Bank are all trading above their 200-dma’s. Bruce Berkowitz also came out today and described his “value” thesis for Bank of America. This could have helped the move today in BAC. Euro finance ministers are meeting in Brussels tomorrow to discuses an emergency rescue plan for Greece. I think much of this negative information is already priced in and the market is disregarding it. Spot Gold closed down -0.68% to $1733.62, Crude closed up +0.57% to $98.97 and Silver closed down -0.50% to $33.97.
