This is my last post for the day: I have better things to do.
The behavior of the bank bulls today is telling. They are acting like little kids, covering their eyes and ears in order to avoid seeing the boogey man. Instead of looking at American International Group, Inc. [[AIG]] , Lehman Brothers Holdings Inc. [[LEH]] , Washington Mutual, Inc. [[WM]] and Merrill Lynch & Co., Inc. Merrill Lynch & Co., Inc. [[MER]] , they look to Wells Fargo & Company Wells Fargo & Company [[WFC]] , The Bank of New York Mellon Corporation [[BK]] , JPMorgan Chase & Co. [[JPM]] and U.S. Bancorp [[USB]] for a little respite.
Sooner or later, you will have to own up to this lunacy.
There is a very meticulous program being implemented to keep the markets afloat. I hope you have learned, through a variety of failed breakouts, they all fail.
Whether banks trade lower today or next week or next month is irrelevant. At the end of the day, economic headwinds, which include a strong dollar, says we go lower.
Despite oil trading lower, oil stocks are up. Go figure.
Plain and simple strategy: short banks, long oil stocks, with an outsized trading position in the refiners.
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Thanks for the heads up on FCX this morning, it is a must own at these levels.
Yea i own Fc fucking X under 70, and over 80, plus some chit like cgo and hows about gay stuff like fwlt over 50, well thankfully i did not bet the little lady’s food and shoe budget on them, so today after waiting for the right bomb to explode I brought leh wb mer and aig, enough of each to get me even on the others, maybe a nice profit too. this is only a mercy trade, to get me even or better, I have tight targets for all these , and will sell ASAP.
Fly, what are your thoughts on bank shorts if Bernanke cuts rates by a meaningful amount on tues, say 50 basis points or so?
Cramer is on pushing for another rate cut again, he has a disturbing habit of getting what he asks for
BREAKINGS NEWS : LEHMAN LIQUIDATING ASSETS
Lehman CEO Dick Fuld was spotted on the corner of 49th and 7th hawking Lehman assets –
EZ Highback executive leather chair – $50
Fire resistant file cabinet – $95
Ameriwood Executive office desk – $115
Bic roller pens – $0.75 for 5
Said Fuld ” We expect this asset liquidation should raise enough capital for the continued operation of our core business”
Awake:
Buy gold, then.
Cramer is the mouthpiece, not the supplicant.
______
Fly,
“Despite oil trading lower, oil stocks are up.”
What is your take on this dynamic? Notice similar things in gold 2 days ago.
Does anyone think something is cooking underneath the curtains? WAMU just went positive.
BM — it’s like when you are down at the docks, picking out the hookers:
Don’t screw with anything under $5.00.
_
Vlad, you forgot one thing:
Fuld on the corner at 49th St. and 7th Ave. = Priceless
He’ll be working his way down to 42nd St. soon enough.
Fly, I wanted to share some work I did on crack spread and refiners, but I can’t post a link cuz of your stupid spam filters! Bah! Best looking refiners are WNR and FTO. And crack spreads seem to be going up… but I guess you’ll never be able to see!
.gov wants control of our mortgages (homes) and now the rest of our financial system… what could possibly go wrong?
Japoe: Maybe I am wrong, but isn’t it clear that traders are anticipating a bounce off the $100 oil level.
The markets are a look-ahead machine.
If there is a breakdown in oil below $100, they all follow.
There are very powerful forces, doing everything imaginable, to stop the losses on Wall Street.
Meanwhile, I feel like the previous CEO of Fannie Mae. I step into an opportunity, rape and pillage all value, then walk away with a nice bonus package.
Banks Suck … SKF to $140.
Vladmir post of the day.
This just in…
CROX to buy LEH for a 1375 pairs of Hannah Montana shoes and a bonus CD
Gun to my head short picks:
LVS (right now, this minute @ $37.05.)
MOS (@ 87.00 optimal)
VMC (@ 74.25 optimal)
________
What the fuck just happened? Up 200 points in the last 15 minutes,
they went HARD into the banks today. the end of day covering is egregious, to say the least. i almost bought the UYG at the open, with the proceeds from my SKF sale, but i couldn’t be home to monitor. wish i’d had the sack to pull the trigger, but the market is bat shit crazy.
something is most definitely up.
WaMu almost doubled its market cap from the open to the close. LoL
Crazy Shit.
BTW, I agree with The Fly. I take no pleasure in these banks going bankrupt. I realize there are good people that work at WaMu, Lehman, Citi, Wachovia, etc, etc, …
As far as the executives and directors go … hang them … FUCKERS!
Topper, prolly a Lehman “buyout,” or “passout” whichever is the more appropriate.
Consider it a gift. I did.
__
FCX ticker on my screen red as the pimple on my butt…
all else looks rosy…
bottom is in. even if leh and wm go under, bottom in financials for the most part is in. skf to 80-85.
Chivas,
I told you, don’t crack the Chivas until 4:30, not 1:30!
_
chivas–probably lot of people hope you’re right on that. A nice thought, but I don’t see it from here yet.
Jake,
lmao. just mark that post and i leave it up to you to say whether it was right or wrong. also, short term rally in oil and gold about to take place, and short term decline in dollar.
Yeah, what could possibly happen to make the financials rally, that flys calculator brain hasn’t though of already?
bank execs have talent, little people are unimportant.
Alpha,
you might be right, however, i have and an indicator thats 99.9% accurate. it’s called the vomit indicator, which is what i did early this morning. it might take some work, but i think we’re there.
LOL. The puke factor definitely comes into play.
When you look at financials, they’ve actually had a rally since coming off a bottom in mid-July(pull up a chart of XLF, 17.70 to 21.45). I think with all the troubles still out there, we end up going back down to test those lows. jmho.
Transports are on fire today. FedEx raised. CSX raised (citing strong growth, not lower fuel costs). The guy from Seaspan said he’s seeing a significant uptick in stuff shipped from Asia to the U.S. beginning in August after a lull in activity in June and July.
Early cycle names are scorching. Goldman added D.R. Horton to its conviction buy list today (helping push my CTX up another 6%).
I think Chivas has it right.
The case for a bounce of oil and gold here based on support/resistance is strong.
However gold sliced through the support at $850 like it did not even exist, and the rally in oil at $125 was not much better at the support. The USD/EUR does not have any support until $1.38. Currently just under 1.40.
So we could easily drop through $100 without the bounce that is anticipated by the oil stocks today.
I am positioned with long DIG and protective options.
Check out on the news clips how non-chalantly Obama tosses the flower at the 9/11 site. McCain kneeled and showed much more respect for the gravity of the moment.
Pud,
thanks. you’re exactly right about the transports and early cycle names.
the bottom in? now?
what are you guys reading?
smoking
popping
shooting
all I can say is good luck with that scenario
Alpha … is absolutely fucking right. The S&P 500 tested the July lows today at the open, but the financials are still way above the July levels. When the financials do rollover, it will be the catalyst to take the S&P 500 to new lows.
Who the fuck are we kidding here? This is unprecedented shit going on. The CEOs of these banks don’t even understand their own balance sheets.
This is just another unsustainable, short lived, money rotation.
.
houston, we have a problem.
http://www.nhc.noaa.gov/refresh/graphics_at4+shtml/201346.shtml?3day#contents
“Whether banks trade lower today or next week or next month is irrelevant. At the end of the day, economic headwinds, which include a strong dollar, says we go lower.”
I’m with you in spirit, Fly. However, being an options trader it’s not completely irrelevant to me.
What gets me is that people are not in the streets burnings cars at this point. The fat cats are laughing all the way to the bank as the tax payer is taking the bill for all the sins they committed in the last few decades.
DISGUSTING – what will it take in this country for citizens to stand up for themselves?
“Check out on the news clips how non-chalantly Obama tosses the flower at the 9/11 site. McCain kneeled and showed much more respect for the gravity of the moment.”
Please
Stop
The
Stupid.
Show some respect for the moment yourself and stop trying to find a political angle that
might
be
just
out
of
reach.
“I take no pleasure in these banks going bankrupt.”
I do – sorry, call me devious – whatever. The entire industry deserves to die, otherwise lessons will never be learned.
Since JPM got their gov’t handout with BSC, it is now BAC’s turn. Might as well buy your puts now, as LEH will obviously be only worth $2/share.
I guess that means that MER will go to GS in a few weeks time.
WM to C after that?
I was green today and I am green for the week …..so far. If it wasn’t for a freakin closed end bond fund, I would have been several times more in the green. There is an ETF for gasoline – UGA – I watched it today – it’s not a double long and it is pretty sleepy – this cane could be a bust like the last one – 100 mph at 4:00 pm.
Mole:
DISGUSTING – what will it take in this country for citizens to stand up for themselves?
One thing: understanding.
__
GOVT will arrange for LEH sale…wash post
wtf?, nice job you beat CNBC by 4 minutes!
dollar at low against EURO…could get a gold and oil bounce
thanks granpa…just trying to contribute
Molecool:
“What gets me is that people are not in the streets burnings cars at this point.”
And how many cars exactly have you burnt today? Umm, make that EVER ?
The people of the US are just like you. Either Gutless or ignorant, or a trader making mad coin off of it. Which one are you ?
“And how many cars exactly have you burnt today? Umm, make that EVER ?”
I was raised in Europe in the 1980s – part of the (real – not fashion) punk movement. Trust me, I have done my part and have scars to prove it. How about you, pal? Ever stood in front of a line of scared cops pointing tear gas and steel batons at ya?
Didn’t think so – just a snooty ass voice on the Internet – you should be so proud of yourself.
MARKET TODAY: Lehman about to get sold – that’s GREAT news!
MARKET TOMORROW: Oh crap… LEH is insolvent…
I think this market is being run by coke snorting Viagra popping Prosac addicts.
Molecool: I am not a member of the community of people being fleeced by the government, so I have nothing much to be angry about. Although I can assure you I would be mad as hell if I was, and would definitely join you on the battle line, if there was one.
I do agree with you though … why are the taxpayers not getting really MAD as HELL about this? Why is it that Jim Rogers appears to be the only really angry one ?