Merrill Lynch & Co (NYSE: MER) Takes One On The Chin Says Market Timer Frank Kollar

July 29, 2008 (FinancialWire) (By Frank Kollar)

Shares of Merrill Lynch & Co (NYSE: MER) shed some 11% in Monday’s July 28 trading, as bank stocks in general shed most if not all of the gains they added last week. Merrill Lynch though appears to have been hardest hit.

Merrill Lynch is now trading beneath lows that have not been seen by this stock since the bear market lows of 2002. Reaching those 2002 lows likely sparked the buying last week, but with the stock now trading at even lower lows, you have to expect the next support level to be reached. That is way down at the 1998 lows at $17.87 a share (intra-week) and $22.81 (weekly close).

Those intra-week lows are a possibility in coming weeks and, if reached, could mark an excellent buying opportunity not seen in many years. Merrill Lynch is not there yet though, and even if such levels are reached, we will need a bullish reversal pattern on the charts before we act. As holders of Nortel eventually realized, you can always go lower

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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