iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,445 Blog Posts

Buy the Banks!

Aside from [[LEH]], major banks and brokerage firms have tiny short positions. The percentage of shares sold short range from 1-4%. The stocks suck, due to institutional selling, not bear raids.

In the regionals, most of those fuckers have 10-30% of their floats sold short. It doesn’t take a rocket scientist to understand there is more upside in the regionals, providing we get a squeeze.

Within the regionals, I like [[UB]], [[ZION]] and [[CMA]] for a trade.

With oil fading here, yet again, I will buy [[FTK]] and [[RIG]] on a dip.

Finally, I covered my [[LAZ]] and [[CHL]] shorts.

I believe we can rally here.

Top pick: UB

Clarification: I like UB as a conservative play. Also, with the Bank of Tokyo owning 68% of the outstanding shares and Barclay’s 9%, the stock can ratchet higher quickly, if buying interest emerges. ZION and CMA are my short squeeze plays.

ZION is trading .75 its book, with a 27% short position.

CMA is trading .88 its book, with a 13% short position.

UPDATE: I covered all of my shorts, with exception to [[FED]] and a little [[REW]] and [[TWM]]. Also, I own a little [[DUG]] If you enjoy the content at iBankCoin, please follow us on Twitter

23 comments

  1. Gunners

    how about HCBK?

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  2. buylo

    u thinking going long GS after earnings? Would be a big rally if the financials participate like today.

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  3. BOOMER

    If The Fly shot hoops as good as he picks stocks:

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  4. lokapujya

    UB is only 3% short according to E*trade

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  5. The Fly

    I gave a clarification.

    See above.

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  6. BOOMER

    FLY – Is the larger theme heavily short squeezes, or limited to financials? See OSTK today for an example.

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  7. The Fly

    I think the sector can run here.

    Just a feeling. I could be brutally punished.

    We shall see.

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  8. lokapujya

    Thanks The Fly.

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  9. Juice

    How bout shorting FXP? You just know China is finally gonna take the handoff tonight & go up like 5% or something. Then GS pulls a wabbit out of their ass & up the market melts.

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  10. BOOMER

    PNFP. Give it a look. One of the best run small banks in the US. An old friend runs it.

    http://finance.yahoo.com/q/ks?s=PNFP

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  11. Big Mike

    I agree, I bought some XLF calls since last week to hedge my regional banks shorts;

    I am getting killed shorting the QQQQ’s…this has to be worse than shorting Ags stocks.

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  12. The Fly

    I am all out of FXP.

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  13. Juice

    Retail flying on the back of 138 oil. And why shouldn’t it.

    Makes complete sense.

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  14. Hybrid

    Today is the ralley for the financials. Sell the news.

    C’mon FLY- your better than that.

    Buy the banks after the couple days we have rallied?

    Not so much

    Donkey punch for you

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  15. Hybrid

    Sell the news people.

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  16. The Fly

    Hybrid:

    Go fuck a goat.

    “The Fly” does not need nor willing to listen to your rank amateur advice.

    “The Fly” is Godzilla: Hybrid is Japan.

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  17. Woodshedder

    Fly, what about KRE? Good for this play?

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  18. Hybrid

    FLY

    Sorry for my behavior. It was very amateur.

    You are GOD

    Off to fuck a goat with no lube or condom.

    Its gonnna hurt me more than it hurts him.

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  19. BOOMER

    Just covered 1000 intraday short BOOM 38 to 37.1.

    I am looking for another short entry on BOOM. Seems to have support just above 37. Waiting for a pop to fade.

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  20. TraderCaddy

    I like to trade KRE (regional bank etf) although I seem to recall it holds a ton of banks and none has a position of more than 3% (as I recall).
    Tiger is playing the Par 3s like a Nancy (and I don’t mean Lopez).

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  21. Dinosaur Trader

    How about HCBK?

    -DT

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  22. Jakegint

    Giving it back to Rocco?

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  23. TraderCaddy

    Could be going into extra innings. Gotta love Rocco.

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