This is getting interesting.
Did MER really get a 70% premium? Will JPM really buy Washington Mutual, Inc. [[WM]]? I got an idea, let’s all just merge together, tonight.
Update: As I’m writing this post, it is official, Lehman Brothers Holdings Inc. [[LEH]] just filed for bankruptcy, what a sad day. I guess the fortune cookie doesn’t lie, good thing I’m short Legg Mason, Inc. [[LM]] .
Plays going forward: short Goldman Sachs Group, Inc. [[GS]] to zero, and pick up some [[SRS]] .
Current trading positions:
As for oil, it should bounce here as the dollar gets poleaxed. In that space I own National-Oilwell Varco, Inc. [[NOV]] and Tesoro Corporation [[TSO]] and plan on holding both (no panic selling at the open). I also plan to hold my position in FCX as gold looks strong.
The only position I’m worried about is Google Inc. [[GOOG]] , but I have a clear exit– a close below 410.
I’m hoping Apple Inc. [[AAPL]] takes a hit tomorrow, as that is one stock I would love to buy on a nice dip. I also have a few puts in the Q’s (thank God), but nothing in size– mainly a hedge on my two tech positions.
I wish I had a few more shorts, but I think I will make it out Ok considering the events. I have a decent cash position and will be buying [[SRS]] , “Maybe” AAPL, and more puts on [[LM]]
As for my IRA, that’s another story.
It will be an interesting day.
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A day like today brings images of the O.K. Corral. Is it possible once the smoke clears there will only be two prime brokers left standing on Wall Street and not by accident?
One story you will not see in the major media is how and why J.P. Morgan and Goldman Sachs might be the only ones left.
Read the full story:
http://www.gamingthemarket.com/2008/09/crash-market-and-monopolize-it.html