Sold the Q’s Replaced with BAC
I have an IRA that I almost never touch. I glanced at it yesterday and realized that I had some money in QQQQ which is an ETF that is essentially like buying the NASDAQ 100. Not a bad long term play, but I wanted to take a little bit of money and buy a potential winning lottery ticket. I sold enough QQQQ to purchase 500 shares of BAC.
Bank of America could be that lottery ticket. By absorbing Countrywide, BAC owns much of the mortgage market. Our government is doing whatever it can to make the mortgage arena a profitable one for companies playing there. If things truly have bottomed in housing, as recent data might suggest, this ticket could pay off big.
500 shares won’t change anyones life. But I could see the QQQQ to BAC trade being a 5 bagger in a couple of years. To top it off, I got out and in at pretty good prices. Sold QQQQ at $30.59 and bought BAC at $7.44. I sold the Q’s at market and placed a limit order on BAC. The tumble in financials after the treasury auction allowed me to get a good price.
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