BOFI reversal...

Opened at $128, down to $122 at 3:30PM. This has had a long run, is this a climax top?
http://stockcharts.com/freecharts/gallery.html?bofi

We have had good volume on the run up - if it had been very light volume on a 20%-30% move then you would want to worry that the big boys were not accumulating anymore and the bottom could easily fall out.
The volume was about average today.
The high was only about 20% above old highs of $106, not bad, but a frequent resting point for “intermediate term growth investors/speculators”.

I will post some “typical” signals of a climax top later, keep your eyes out, but don’t worry too much. Yet.

Opened at $128, down to $122 at 3:30PM. This has had a long run, is this a climax top?

My personal opinion is that, for a bank, BOFI is now trading at a reasonable value for its performance (especially on a P/B basis of 3.6 x tangible book). I don’t think you buy BOFI today hoping the market is going to wake up to the opportunity and revalue it, like one might have last year or even early this year. Today, IMHO, it’s just a great and well-managed company that will hopefully continue to grow and perform, earning further increases of share price over time.

I wouldn’t mind another short attack, though :wink:

Neil
Long BOFI

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