Not sifu,
but my opinion is they want to increase the confidence from investor. A lot of banks in Us in these years since 2007/08 cut out their dividend by large amount. well most of the US bank if you noticed all still stuck in the level of 2009.
The regulation in US had set tougher rule for bank through volcker rule and Basel III to increase the reserve requirement from banks. Beside they also some of the business used to be generating profit for bank.

Too much cash doesn't mean they wont fail the stress test. The purpose of stress test is to test whether bank can withstand with financial shock. They key question what capital is used to withstand those financial shock. some of the capital may NOT BE QUALIFIED since the new rules have been imposed. For example, Hybrid equity which compose of equity and debt always ambiguous for the purpose of reserve capital. Increase equity from investor in order to meet those stress test is a huge cost since investor see DIVIDEND as  compulsory (which is very costly in perspective of bank) consistently.

my 2 cents correct me if I am wrong

what to buy?

Waw, no one predicted end of  last year that Dow would hit 13,000 this year.

The market is full of miracles.

From cannot, now everything can.

What a big difference .

Congratulations to those make the profits.

I enter c at 47.00 3 year ago. still making loss.

The pull back to 10ma is here.. so, time for me to cover and go long on SPY as long 138.90 holds.

Is it worth to buy APPLE INC now? Since it goes so high!

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Added on March 20, 2012, 10:59 pmIs it worth to buy APPLE INC now? Since it goes so high!

JESSE LIVERMORE SAYS BUY HIGH, SELL HIGHER 
but dog jones at this level still no minor pullback yet
earnings season is next month & expect not much movement until earnings begin 
expecting superb earnings, otherwise, longkang lo for my gambling time with call options

nobody knows.

why AAPL? Because it just shoot by 100 US$?
All depends on your risk appetite and total cash in hand.
Assume u got 10,000 $ in hand, u can get only 16 shares say at 600$
When Apple hit 615$, u earn 15x16 > $230 less charges etc.
Once economy starts booming, banking stocks are better bet.
Get Banking ETF ----> XLF or just plain banking stock like BAC

BAC 10$ x 1000 = 10,000$
Up by 20Cts, you make $0.20x1000 = 200$

BAC can even move back to $15, hence $5x1000 > $5000

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Added on March 20, 2012, 11:12 pm

a little poor on the options volume, means hard to trade.

Wed: 21-03-2012 (Neutral) G@P +2.92 ▼ / PiT +77% ▲ News

Seems that Market is not holding longer, corrections?! What do you see?

http://testmarketidea.blogspot.com

Thanks for the suggestion! Besides BAC, any other stock consider lower price which can enter?

damn normal. its not a correction if just down by ~50 points.
CORRECTION is a major 3 digits plunge, continuously or in the similar pattern.

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Added on March 21, 2012, 10:19 pm

Micron, ie MU. Low debt. Check the financial.
Good volume, big intra-day movement.

Is it blue chip company suitable for long term investment?

Thu: 22-03-2012 (BuLLish lvl1) G@P +0.18 ▲ / PiT +77% ▼ News1, News2

Market is entering to bunch of bad news. We should adapt Hold or Wait for incoming downturn. If you really wanna buy at this time, please do make it a very small portions only. Keep more money to buy in a right time.

http://testmarketidea.blogspot.com

I enter china select public fund 5 year ago. now 50% loss.