Financials

[david77080]

The banks got killed last week. The SKF ultrashort financials ETF moved from 134 on Monday to 150 by Friday. Do you think the banks will continue to go down ? Thinking I want to get long SKF for a while. Let me know what you think. Thanks Dave

[john_for_u80]

The banks got killed last week. The SKF ultrashort financials ETF moved from 134 on Monday to 150 by Friday. Do you think the banks will continue to go down ? Thinking I want to get long SKF for a while. Let me know what you think. Thanks Dave

Bad timing! Market might fall few days but expect a rally after that. I would not touch SKF right now.

If you want to get into SKF then buy small position at a time with a stop loss.

After market is done rallying, buy SKF! Good time was when DOW broke its uptrend (Bear market rally) in Mid May!

If you already have SKF then it is time to sell small chunks at regular intervals with a stop loss below whole position but buying a big chunk right now to go long is a bad idea!

[wallstreetsedge]

i think over the next 2 weeks, we see a good rebound on the financials.. i think most of them went on overkill and a lot of people will begin to realize it or perhaps we start hearing about more buyouts and bail outs

[cramerica1972]

i think over the next 2 weeks, we see a good rebound on the financials.. i think most of them went on overkill and a lot of people will begin to realize it or perhaps we start hearing about more buyouts and bail outsand....................................MORE perp-walks :mrgreen:

[madcowdisease]

What do you htink might be a safe entry in SKF? A pullback to its MA(20) of ~$130 perhaps or is that wishful thinking that it will go that low with a true bear market upon us? Maybe a pullback to the MA(10)?

[cramerica1972]

What do you htink might be a safe entry in SKF? A pullback to its MA(20) of ~$130 perhaps or is that wishful thinking that it will go that low with a true bear market upon us? Maybe a pullback to the MA(10)?i wanna get into the bank stocks,but they still going lower than i can sit on the toilet!!!!i'm thinking of buying C or WB for longterm hold.:idea:

[madcowdisease]

i wanna get into the bank stocks,but they still going lower than i can sit on the toilet!!!!i'm thinking of buying C or WB for longterm hold.:idea:

IMO, Wachovia is the better of the two. Fatter yield too even if only by a percentage point.

[BuyOnDips]

The banks got killed last week. The SKF ultrashort financials ETF moved from 134 on Monday to 150 by Friday. Do you think the banks will continue to go down ? Thinking I want to get long SKF for a while. Let me know what you think. Thanks Dave

I'd buy it on a pullback. Use stops to limit your downside. I don't like the financials for the rest of this year. Picking a good financial stock right now is like picking the best hooker from a leper colony. Why would anybody do that? IMO, stay away from financials.

[john_for_u80]

i wanna get into the bank stocks,but they still going lower than i can sit on the toilet!!!!i'm thinking of buying C or WB for longterm hold.:idea:

Why you wanna catch the bottom? Because you will miss the upside of few % gains?

What makes you feel that this is the bottom and worst is over? Do you think anything has changed other than the stock price which you find it cheap?


Do you have the the size of gray matter those bank managers/CEO have? If yes then you will be sucked in along with those suckers who are in trouble!

If you feel bad or angry about me then its ok but please stay away from these banks if you want to save your money. Making money is out of picture!

[pa-sale]

i wanna get into the bank stocks,but they still going lower than i can sit on the toilet!!!!i'm thinking of buying C or WB for longterm hold.:idea:

I have an existing C position and have nibbled at the bottom. I am also playing the options to give some protection.

[cramerica1972]

Why you wanna catch the bottom? Because you will miss the upside of few % gains?

What makes you feel that this is the bottom and worst is over? Do you think anything has changed other than the stock price which you find it cheap?


Do you have the the size of gray matter those bank managers/CEO have? If yes then you will be sucked in along with those suckers who are in trouble!

If you feel bad or angry about me then its ok but please stay away from these banks if you want to save your money. Making money is out of picture!even as a longterm hold,say 10-15 years?

[BuyOnDips]

SKF is hot today. The financials just suck. Some day there will be a bottom. But I still don't like them this year.

http://finance.yahoo.com/q?s=skf

[madcowdisease]

SKF is hot today. The financials just suck. Some day there will be a bottom. But I still don't like them this year.

http://finance.yahoo.com/q?s=skf

I think I am going to go ahead and grab a piece of SKF. This is just craziness. The bad news just keeps bouncing around in this sector. If it isn't a national bank it's a regional bank. If it's not a regional bank it's a quasit-government supported frim like Fannie or Freddie. I don't know where the bad news is gonna hit next but I'm pretty confident it's gonna hit again.

[cramerica1972]

I think I am going to go ahead and grab a piece of SKF. This is just craziness. The bad news just keeps bouncing around in this sector. If it isn't a national bank it's a regional bank. If it's not a regional bank it's a quasit-government supported frim like Fannie or Freddie. I don't know where the bad news is gonna hit next but I'm pretty confident it's gonna hit again.maybe it'll hit all financials.

[madcowdisease]

The action today in real estate and financials was an aberration. This looks like a great opportunity to pick up a little SKF and SRS. The action in the drug stocks and DRG - up 3.3% - is proof. The big boys wouldn't be moving in to these names if things were looking up for the economy. Might even look into a little DXD as well.

[madcowdisease]

One of my portfolios was up 7.23% today on the back of these short ETFs. SKF, SRS, and DXD had a big run toward the end of the day. I expect a little bounce tomorrow but the trend for the intermediate term is lower. Position yourselves appropriately.

Until jobs turn, oil goes lower, and housing sales pickup you can expect the averages to go lower. I hate to be such a pessimist but this is the only thing that is working at the moment.

[Assault on Reason]

Wow, did the financials ever get killed today.
Lehman and Wachovia are looking like they are headed for bankruptcy,
and Fannie and Freddie will probably get bailed out tomorrow.
Best way to play this?
I think the best bet is to short MBIA, the bond insurer, seeing as the federal reserve bonds are starting to vanish, and the selling of bonds is increasing. The bonds left in MBIA are beginning to look more like IOU's than anything else.
I'm looking for a bailout by Bernanke and his bunch of non-doers soon

[ZaNoob]

Question on shorts, what happens if they halt trading then the company goes into bancruptcy? Do you get your money back based only the share price value?

Rephrase - what happens to your position if short a company that subsequently get a halted trading and then goes into bancruptcy.

[Assault on Reason]

With financials, generally speaking, they get bought out before they go into bankruptcy. For example, Bear Sterns claimed to be in excellent financial position the night before JP Morgan bought them out for $2.00 a share (later raised to 10). The world did not know that they were bankrupt, and technically, according to the Fed, they never really were. The Fed bailed them out and convinced JPM to buy them out, assisting in the financing. Benanke and Paulson, after speaking today, know that Freddie, Fannie, Wachovia and Lehman are going bankrupt, but they will bail them out.
The key for trading is to identify, using credit reports, when a company is in a state of negative credit, even including the Federal Reserve. These are the companies that will eventually end up going bankrupt later on.
To answer your question, I don't think that you get any money if the company files with a net value of 0, but the key is to trade up to that point. But like I said, the Fed will never let the US' largest financial institutions go to a net value of 0. They will convince some other institution to buy them out.

Best way to see the financial situation, keep track of MBIA (MBI), trading around $4.00, I'm actually looking to see a bankruptcy there and maybe a buyout from Ambac.

[cramerica1972]

if wb goes kaput,what happens to my money in the bank accounts i have with them?

[Assault on Reason]

Keep in mind as well that these are purely my opinions based on readings and interpreting. I may be completely wrong, and the banks could be fine. I just think that based on economics, and credit reports, that these institutions are up to their necks in debt, and shorting them may be a good way to make money.

[madcowdisease]

if wb goes kaput,what happens to my money in the bank accounts i have with them?

The FDIC has your back up to $100,000 per account. If you have an investment account with them I'd check to see if they are an SIPC member firm. In that case there is protection up to $500,000 per account. You're fine. However, not to be confused with Cramer when he said you were fine in BSC. I would not hold the stock unless held short.

[madcowdisease]

Given all this specualtion and conjecture about these financial institutions going under and the assumption the Fed is going to step in to mitigate the damage do you think it is OK to hold SKF?

Will Fed action spook Wall St. or act as a Bernanke put option and prop the markets up or even cause a rally?

[Imperator]

I would own the ultrashort financial etf, but only in context as a hedge. You could buy some high yielding financials that have save dividends;i.e., BAC, ACAS. Then you could have a position in SKF to offset any downward moves in the financials.

[BuyOnDips]

Given all this specualtion and conjecture about these financial institutions going under and the assumption the Fed is going to step in to mitigate the damage do you think it is OK to hold SKF?

Will Fed action spook Wall St. or act as a Bernanke put option and prop the markets up or even cause a rally?

I still currently have no faith in the financial sector(at least for the next 6 months). Set a trailing stop on SKF to protect your profits and let it run. It's very volatile. I'd still buy any large pullbacks of SKF(with a tight stop loss). Remember it's had a great run in the last 2 months. So a lot of the easy money is gone. But I don't see the financials bouncing back strong any time soon, even with government help. Good luck!

[madcowdisease]

I still currently have no faith in the financial sector(at least for the next 6 months). Set a trailing stop on SKF to protect your profits and let it run. It's very volatile. I'd still buy any large pullbacks of SKF(with a tight stop loss). Remember it's had a great run in the last 2 months. So a lot of the easy money is gone. But I don't see the financials bouncing back strong any time soon, even with government help. Good luck!

I'm out of SKF with a solid short term gain. With as much volaitility is in that sucker I didn't want to give gains back after a great day on an oversold bounce in the financial sector. However, I will continue to watch SKF on any over sold rally in the financial I will look to get back in for the next leg down.