Wonder whats cause the massive run up last couple days? I'm tempted to short but already losing in my WM play so holding off.
Maybe FRE saying that it is going to bail out the subprime sector ($20B) with the backing of Hedge Fund puppet Senator Dodd.
18-Apr-07 05:21 ET In Play Has Sallie deal put banks in play for private equity? - WSJ : The Wall Street Journal reports the slated purchase of SLM Corp. (SLM) by two private equity firms and by banks J.P Morgan Chase and Bank of America has investors searching for other financial stocks that might be targets. In fact, investment bankers say other buyout shops are discussing acquisitions of undervalued financial companies, even including some banks. Among those that could be takeover bait are Countrywide Financial (CFC), CIT Group (CIT) and iStar Financial (SFI), according to some traders and analysts. The fact that Blackstone Group also vied for Sallie Mae suggests that other private-equity firms could be eager for these kinds of deals. KeyCorp (KEY), which provided a disappointing earnings forecast, possibly making it attractive to a private-equity firm, one investment banker said. The banker, who said KeyCorp might see some improvement with a buyout partner, argued that private-equity firms are getting so big and diversified that regulators might be more comfortable with those firms owning a bank.
I would short around 40....I have shorted at 36 a few times and did well. Im tempted to short some here.
There is an implied put now attached to owning these shares. The taxpayer will be bailing out the mortgage companies that are holding the bag. It is a thank you gift from the congress, for all of the generous campaign contributions they have received.
Read my post on this thread and view the chart with my blue support zones..... nuff said http://elitetrader.com/vb/showthread.php?s=&threadid=88864 Here is the updated chart with the price action that followed at those zones. Hit resistance, dropped to first support zone and rallied. Hit second zone to the tick and exploded....