thats what is fueling the market not the PPT. http://www.marketwatch.com/news/sto...7D-4159-B99D-EF38D5460F51}&dist=TQP_Mod_mktwN any ideas on what the bailout will be?
Just the fact the problem is being seriously address is enough to generate some optimism. Its unlikely that now an active solution is being sought that there will not be some good news of deals reached soon, this is the peice of the puzzel that needed to be addressed for the market to move off the lows. Looks like you and I were the only two on ET who had this figured out days ago
I understimated these stocks reaction to a potential buyout or bailout as a result the rally was too hard for me to watch and I had to cover the whole thing. Still I dont think its a slam dunk the shareholders will get what the market is currently pricing in(something like 50% of book value), I might revisit these guys later. are you short?
No went long ES at 1276 this am stopped out at 96.50 and stopped again for a few more points and then long again at 1304 with a target of 1365. Also have QQQQ, HPQ, and EEM Calls that I bought Thur and Friday that are just about back to BE. My core position has been EEM 09 Puts since Dec and I finally sold a few on Tuesday and this morning to lock in some gains and the increase in vol. Will cut the ES loose before the close and hold the Feb calls as a hedge. Am only expecting a short term bounce rally on the back of the Fed cuts and the stimulus package.
cramer was dead right on this. es and financials were being driven by mbia and abk. should be all uphill from here if the bailout measures are any good
This "euphoria" will be temporary then reality will set back in again. Good for a bounce as someone put it. Then back to bears eating bulls. Actually they will milk this for all it's worth and ramp the DOW back up suckering in a whole new crowd of sheep ready for the slaughter.
I agree. whatever solution is created it will cost money for the banks, and somebody will have to take those CDOs losses. but for the short-term these financials should keep flying
this reaction is about preventing a ratings downgrade which would force banks to take more hits...... 15 billion to abk and mbi.... who are technically insolvent anyway.... remember ACA capital was trading on the pink sheets but retained an A rating...until recently where does the 15 bill. come from???