...could be worse... "While playing golf today I hit two good balls. I stepped on a rake." Henny Youngman
lulz. Yes. i've had a fair few like +35 point days in a row recently, so i'll just have to eat teh -18 today. Miss timed it. If i'd have waited a few mins until vanz posted, i'd have shorted his area instead and been out at like +20 or so and called it a day most likely. But there ya go
There isn't any momentum upwards for bank stocks yet. I'm looking for extended gains. If I miss it, I miss it.
I assume you mean that he is implying a bank meltdown. How many of those losses are hedged? Does he say that?
Does it matter what those losses are now that the fed is guaranteeing depositors and the banks can just hold those bonds to maturity?
Only that more injection of funds means more inflation and also gives the government the scenario where they could nationalize the banks. You make a great point though.
I don't think the emergency funds really count towards QE, as they're really meant to bail out depositors, not necessarily make money easier to borrow, which is the core function of QE. Yes, the bank balance sheet increased, but it's not adding to the money supply any more than what's already there, afaik.
It's an injection of funds unless the government doesn't require payback from the bank. That is if they have to bail the depositors at all.
Hmmm. This begs the question then, what would define upward momentum in your eyes? Now of course catching the ultimate low hanging fruit off of any trading vehicle is the bounce off the low. For example buying one of the banks last week. Take Fifth Third. I think it nipped at $22 last week, it trade over $27 today. 22% on a bank stock is huge. But realistically, no one had the balls to buy it at the low, and it lived down there for a very short period, giving those that might have had the balls, a small window of opportunity to get in. So we can agree that only the lucky catch those moves. Or the incredibly quick and astute obviously. But going back to my question, and I agree with you too (that's why I asked); but what in your eyes will now define upward momentum in the sector? You can't use intuition, only some can do that. So quantify your thoughts B1, inquiring minds want to know.