Buy BSC/financials

Discussion in 'Trading' started by Cutten, Jan 23, 2008.

  1. Cutten


    They've bottomed. BSC to 100 within 2 weeks.
  2. S2007S


    hmmm, how do you know?
  3. S2007S


    I say buy UYG or XLF....
  4. Stay away from financials, don't try to pick a bottom.
  5. Mvic


    One thing financials have going for them is that trading volumes have exploded.

    If I had to go with one though it would be GS. Why BSC in particular Cutten?
  6. Cutten


    The main reason is because it is acting very strong today, on high volume. It's up 5.6% vs less than +1% for GS. I am long GS too but that's more of a long-term position. IMO BSC is a good short-term trade, quick 20 points in 2 weeks I feel.

    Regarding bottom-fishing, I agree there is risk - but that's why there is opportunity too. So you need a way to limit losses if wrong. In my case, if BSC starts acting weak later today, then I am out. Intraday there is support around 81, so I have a stop at 80.4 on half my position. I have stops on the rest at 77.5 and 74.5. Also, if it closes below $80 today then I will probably exit most of my position (still keeping a bit for long-term though).
  7. Mvic


    Well constructed trade Cutten, sounds good, thanks.

    Congrats on your Nikkei buy.

    Good trading.
  8. Bowgett


    You are late man. I bought them last Friday.
  9. You shouldn't be so proud of yourself. If Bernanke hadn't been pressured into bailing everyone out by his cronies then you would have had nothing to save you from huge short term losses. But then again, you probably knew exactly what would transpire over the weekend right?
  10. Bear market finished for now. Wait until February. Go long if you like.
    #10     Jan 23, 2008