Remember, most of those stupid banks that were up 40% today will go out o’ business. You can have a scenario where the market gaps higher 1,000 points and two dozen bank stocks go to zero.
Odd, no?
I couldn’t help myself. I blew out of half of my [[UYG]] position, after bagging more than 2 bucks—intra-day. However, I did keep my [[RKH]] long in place, just to hedge my gay regional bank shorts.
Aside from weakness in some ‘global growth’ names, like [[CBI]], [[FWLT]] and [[FLR]], everything melted up, big time.
Scratch that, oil stocks went down too.
For the day, the trading mantra is to be short oil/long financials.
How stupid is everyone?
I will say, I have found it very difficult to borrow shares, in order to short bank stocks. I suspect there is some fuckery going on there.
If you have been short this market and have big gains, do not trade with your emotions. Do not be foolish and give back your hard fought gains. The market will gyrate wildly, prior to the ultimate move lower. I would not be surprised to see the DOW 500 points higher from here, or 2,000 points lower.
In short, it makes little sense to attempt to make a killing “now.”
After all, it’s the summer. I bet you will find the beach or pool to be a better place to hang out, instead of some retarded trading turret.
Towards the end of the day, I was tempted to add to short positions, but refrained. I will hold cash and sell my longs into the rally, while waiting for better prices to reapply my “death grip” on “select unspecified names.”
For the day, I was debanked to the tune of 4.8%.
UPDATE: This is Barry’s best post ever. A must read.
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You were long UYG and RKH and were still debanked ? Is the rest of your portfolio composed of Florida subprime CDOs ?
I’m taking my losses on HRB like a man and flying in to Saratoga to try and get it back this weekend.
Wanna hook up?
I was about flat – I kept expecting it to flatten if not pull back some. Is this real or not? I still think not. Time for Iran to shoot some more missiles.
Can we get an Iranian rally monkey?
Remember Dawg’s list of failed banks posted on the FDIC website?
Can’t remember exactly when he posted it, but there were only four down in 2008 at the time.
Now it’s
fourteenfive.(Update: sorry, I’m a retard, and read the wrong column in my “enthusiasm.” Still…)
Think that’ll be it?
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How about those market on close orders today?
Insane.
-DT
Is LEH still a gd short when this fuckass rally ends
^^^^^^^^^^^^^
‘Splain yo’self Loosey.
^^^^^^^^^
Whew!
I can breathe again.
Chivas had me locked up in the dungeon.
What the hell happened to Chivas?
He should’ve had his monkey going jiggy all day.
__
a healthy pull-up in an ongoing bear market.
SPX 1163 will prove Crucial when (not if) Tested,,,,,,!!
you all will prob find this interesting…analysis of the WFC Q, copy/paste from a thread over at calculated risk
if your lazy, just read the bolded part
seems there is a bit of “moving the goal” post going on:
========================================================
Here’s more on Wells from Housing Wire. That’s a lot of HELOCs and the experience on 90% LTV loans has been, shall we say, rather disappointing for a lot of lenders:
“Seconds still lurking
Despite the optimism, a burgeoning portfolio of second-lien mortgages at Wells Fargo that had in recent weeks concerned analysts and investors hasn’t gone anywhere; and, if anything, Wednesday’s quarterly result also holds evidence that the credit losses in that particular portfolio have yet to fully reverberate throughout the bank.
Wells has a substantial $84 billion portfolio of home equity loans — and half of those are located in hard hit states like California and Florida; of that total, it has carved out the worst $11 billion for liquidation, with rest remaining as part of its “core” home equity portfolio.
In the second lien portfolio set up for liquidation, the percent of loans that saw borrowers miss two or more payments rose during Q2 to 3.6 percent, up from 2.79 percent one quarter earlier. The $73 billion “core” home equity portfolio saw a similar rise to 1.88 percent in 60 day delinquencies, compared with 1.71 percent in Q1.
So delinquencies continued to rise during Q2; net credit losses, however, did not. Charge-offs on second liens were actually down $104 million compared with first quarter 2008 — but don’t let that fool you. The improvement was primarily due to a change in how the bank handles its home equity portfolio charge-offs; earlier in Q2, the bank extended its charge-off policy from 120 days to 180 days, in an effort to give troubled borrowers more time to reach a loan workout (or to protect earnings, take your pick).
“Although losses declined, the portfolio continued to deteriorate as property values search for a bottom,” Michael Loughlin, the bank’s chief credit officer. “Given the continued decline in home prices, we had more accounts move into the higher combined loan-to-value segments, which directly impacts loss levels.”
As second lien borrowers see equity in their homes evaporate due to price depreciation, second liens become extremely vulnerable to loss.
Which is why this stat matters more than most: approximately $35.6 billion of Wells Fargo’s $84 billion in home equity loans had combined loan-to-value ratios above 90 percent, according to the second quarter report. And that’s a figure based on automated value models, or AVMs, that were run in March 2008; were those AVMs run again today, it’s almost a sure bet that the number has gone up even further.”
Hey fuckers, we got a sale on breakfast rallies tomorrow morning, extra sausage. We take cash, credit card, plus toxic mortgage paper if you use our “drive-up window”. Free monkey if you order by 9:30am.
WFC
Thank You
So I was a little early on my buy the banks call. 2 more days like today & I’ll be even.
And y’all thought we had no bullets left … Read this, and weep, if you’re currently short one of these 19 securities.
This is one creative gem we came up with. And we got more. Plenty more. We just bought ourselves more time.
Don’t mess with the PPT. We’ll cut your legs off at the knees.
Unwind the long chf positions and take profits. Or stay long if you are going to roll for more.
i think the minyanville post made some good points.
however, since naked shorting has always been illegal, yet nevertheless MMs almost need to do it to function at times, i’m not sure i believe this is as much a ploy for banks to raise capital as it is for the govt to put up a facade of pro-active behavior.
so now i wonder if the fierce covering was probably people worried about fail-to-delivers jacking their profits and just wanted out of the trade.
anyone want to bet that the SEC chairman was privy to the oil inventory data yesterday? i don’t believe in coincidences on wall st…….ever.
Only LEH am I short on that list, and I’ll keep that short, thanks, but it sure says something about attempting to prop those suckers.
All they are doing is winding the rubber band back another turn and a half. Just making it uglier for all concerned when that shit finally snaps.
Short term bullshit is all well and good, but the market “will out.”
_
Q4 — Socially redeeming rap?
Maybe that shit really is evolving.
That said, I was in the mall the other day and saw a Biggie Smalls cell phone “cover.”
As I mentioned, the market “will out.”
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Calvin,
I’m picturing you in front of a bank of monitors in your bedroom.
Right next to the closet with the one hundred carefully pressed white shirts.
Add Kim Basinger (circa 1986), and her “heart shaped ass,” and we’ve got the start of a good movie.
_
Nice call Jake Gint moron….I wrote the below last night. Do I win the Bravada???
Hey shorts…ever heard of a crowded trade? Everything is crap and expect many more financials to go under, but guess what- the market has basically been down every day for the past month and a half. How many others will be selling over the coming days. Keep selling short and learn about the wall of worry.
Jake Gint response of idiocy…
The Wall of Worry, eh?
Anonymous Douchebag, the problem is that you goatfuckers aren’t worried enough!
But hey, thanks for playing. We’ll be sure to enter the above quote in the “Ten Cent Bravado” contest for you.
First prize, a 1997 Oldsmobile Bravado!!