Pun intended, of course.
Aside from Gustav, we have a financial storm brewing in Fannie Mae [[FNM]] , Freddie Mac [[FRE]] and Lehman Brothers Holdings Inc. [[LEH]] . The trillion dollar question is: when will it happen and how will the market react?
Judging by today’s trading, no one really knows.
Since it makes little sense to try to think like an insane Fed or Treasury guy, I believe it is logical to stay away from the financials, at least for a week. Instead, go play with the hurricanes or take a wild stab at some short positions in ‘global growth plays.’ However, my top pick is still short Legg Mason, Inc. [[LM]] .
Bill Miller is just too dumb to ignore.
It’s just real boring out there. To be honest, I feel like I am wasting my time working today. However, I want to be around when the bomb explodes. Therefore, I must work everyday until it detonates.
With my money, I sold out of my remaining [[FXP]] shares and I covered my entire First Horizon National Corporation [[FHN]] short.
Sometime today, I may up my exposure to energy stocks.
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Bennet Sedacca
12:48:55 PM
position in XLK, XLK options, RTH options.
A couple of odds and ends…
I continue to feel like the consumer is toast and the financial system is on the brink. The timing is tough but the event itself, in my opinion, is pretty difficult to avoid. So long term put spreads in RTH I like here. But you need patience.
So my firm’s positions are in long term options of shorts in things like XLK. Why tech? Because tech is full of play toys and consumer discretionary items.
I really like my iPod, but I don’t need 10 of ’em…
Bennet Sedacca
01:19:27 PM
No positions in stocks mentioned.
A few ‘Dead Men “walking’ giving up the ghost
A few of the ‘bad banks’ and some ‘not so bad banks’ from my article yesterday are giving it up. Lehman (LEH), Merrill (MER), SunTrust (STI), Zions (ZION), Washington Mutual (WM), etc.
It feels awful to me, but I still don’t know how they can finance themselves.
I like his thinking Juice, I’ve been short RTH, IWM and the Q’s.
Still worried about support at SPX 1261 though.
Why’d you cover FHN? Afraid of the cheese-makers? They’ll show up this week, no doubt.
Cubs – I need to beef up my retail shorts .. I guess I was waiting for oil to tick $100.
If you’ve been paying attention, you know that something really bad is cooking. Permabull-fuckfaces, will be receiving a freshly minted mass of bear shit slung at them by a MLB compatible pitching machine.
We have built a fucktarded economy on debt, and the de-leveraging process is more painful than the market is presently pricing.
BTW, that desperate POS, WaMu, is now offering a 5%, 13-month CD. Now why would they do that? LOL
BTW:
Great natty ETF: IEO
ANADARKO PETROLEUM APC 5.37
APACHE CP APA 6.99
CHESAPEAKE ENERGY CP CHK 5.23
DEVON ENERGY CP (OK) DVN 7.32
EOG RESOURCES INC EOG 5.07
NOBLE ENERGY INC NBL 3.02
OCCIDENTAL PET OXY 10.76
SOUTHWESTERN ENERGY SWN 3.04
VALERO ENERGY CP VLO 3.91
XTO ENERGY INC XTO 4.8
Nice Fly, it even looks like it trades technically 😛
RRC anyone?
I am long KY. I mean, KY jelly.
The algorithm machines should kick in anytime now and whipsaw this bitch.
Gary Shilling will be on Bloomberg at 3:00.
Fly, thought you were a buyer of FXP below $85?
I changed my mind.
I like RRC.
Donny-
I see the WaMu banner ads all over the fucking place. They should just put out a sign: PLEASE GIVE US YOUR MONEY.
I have a Jugs™ machine I can sell you, real cheap.
thanks RC. I was about to buy RRC @ $47, changed my mind & went with DNR @ $25 instead.