Bank of America (BAC) stock is leading the rest of the large institutional banks lower today. Shares fell more than 2% today on increased volume.
Early this morning it was reported that Warren Buffett’s Berkshire Hathaway had sold almost 14 million shares of BAC. The sale amounted to roughly $550 million of Bank of America stock. According to the filing, the sale of the shares took place between August 15 and 18.
Less than a week ago, Berkshire Hathaway’s quarterly 13F filing had showed that the company had made no changes to their holding over the last quarter.
Since that filing, Berkshire Hathaway has transacted two sales of Bank of America stock.
Warren Buffett has been open about his moves to increase cash in the Berkshire Hathaway portfolio, but the sudden increase in Bank of America sales from the portfolio has investors wondering what he knows that others may not.
The timing of the sale comes as Bank of America shares were facing tough technical resistance.
Bank of America stock took a deep dive in early August following the news of Buffett’s first round of selling. That move put the stock‘s 50-day moving average in a declining pattern indicating a bearish short-term projection for the stock.
Today, BAC shares avoided dropping below $38, a price that investors should watch carefully.
A move below $38 will take out the short-term support and increase selling pressure on the stock.
On a side note, Bank of America’s Brian Moynihan was making the rounds last week stressing the need for the Fed to cut interest rates twice this year.
Bank of America remains in a long-term bull market trend though the short-term risks are flashing a pullback to $32.50 over the next 4-6 weeks.
After a 15% rally from their recent lows, shares of Intel (INTC) are running into selling pressure as the stock traded lower by 2% on Wednesday.
The semiconductor company posted one of its worst single-day losses after its August 1st earnings miss. Shares of Intel dropped more than 25% in a single day followed by another 12% in losses before finally finding a bottom around $19.
At that point, the stock was incredibly oversold and likely to see a “dead cat bounce”, which happened.
Since the earnings report, the company has seen downgrades from Fitch, S&P and Moody’s with the outlook for the company remaining negative.
Long-term investors are still eyeing the long-term plan for Intel which includes the construction of domestic semiconductor production facilities. Earlier this week, Intel announced cuts to the company’s marketing and sales groups as part of their overall cost-cutting measures.
Intel’s chart puts a focus on the $20 price level.
Investors should expect to see signs of buying as the stock touches $20. Failure for the bulls to step in at this “value” price leave the stock in the hands of the sellers with a target price of $18.
Boeing (BA) shares traded almost 5% lower on Tuesday after the company announced a pause to the test flights of the company’s 777X.
The company is taking the pause to investigate cracks in key structural parts of the new plane. The company found the damaged part during a routine maintenance check of the plane. Boeing also grounded three other 777-9 airplanes from the company’s test fleet.
The 777 model has been delayed more than 5 years as the company just started test flights of the new model with the FAA in July. The company currently has orders for 481 of the 777-X.
Boeing shares recently saw a 10% rally from the $165 price level. That price also provided the stock with support in late-April.
Recent selling of Boeing shares has shifted the stock’s 50-day moving average into a bearish trend, suggesting that the stock is likely to re-test $165 with increased potential that the stock will land at $150.
Boeing shares are in a long-term bear market trend with a $150 target.
