August 17, 2010 | In: Uncategorized

CVBF: Mixed Signals

I’m still bullish on CVBF, and I think the stock will go up, to at least $9. Some people think that the selloff that happened last week is unjustifiable, and people are just overreacting (the same way that they did with GS).

Anyway, the stock had a roller coaster today where it went to as high as $8.47 and as low at $8.06, and it closed at $8.17. There was high volume at 8.47. The volume today was 1.82 million, compared to the average volume of 1.42, which is very bullish. On the other hand, there was a huge very high Put/Call ration, mainly at the 7.50 strike, which is bearish. On the other other hand, CVBF still went up despite all the short interest, which is extremely bullish. Also don’t forget that financials in general are not doing great these days.

Again, I do believe that the market overreacted, and the stock will settle at around 9.

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