FNM and FRE bailout bullish or bearish

Discussion in 'Trading' started by jlie, Sep 7, 2008.

  1. bias going into monday:

    FNM/FRE will be down significantly
    Financials will be up big assuming leh stays quiet
    Overall market will be up

    Happy trading, monday will be wild.
     
    #31     Sep 7, 2008
  2. shit i'm short citi and waiting a week for it come back to 18 so I can get out without a loss, should I take the hit at 19.07 (and go long) or does anythink we will be back at 18 at the end of the week?
     
    #32     Sep 7, 2008
  3. jd7419

    jd7419

    You assume you can get out at 19.07. C will be much higher than that at 9:30 if the news is construed as bullish. Could open in the mid 20's for all we know.
     
    #33     Sep 7, 2008
  4. Why would this be good for financials?

    A lot of regional banks just took one up the ass. Their preferreds just went to zero and now they have to mark them to market.

    "Call your regulator."
     
    #34     Sep 7, 2008
  5. because this removes one uncertainty that theses companies represented, on the other hand imo this sets us up for an even harder drop later on possibly even this year...
     
    #35     Sep 7, 2008
  6. Rumor is someone will dance naked tomorrow on Wall Street tomorrow, not fun at all.
     
    #36     Sep 7, 2008
  7. Because treasuries are going to get dumped and the yield curve is going to go super steep with the fed keeping rates at 1%. They will replenish capital faster than you can say "replenish."
     
    #37     Sep 7, 2008
  8. NY_HOOD

    NY_HOOD

    nothing bullish about this. we all knew the government was going to bail them out. if they did'nt,it would be world war three. market will revert to the mean. still a very bear market.
     
    #38     Sep 7, 2008
  9. CNBC agrees

    http://www.cnbc.com/id/26588812

    BTW, should this be a kick in the gut to the whole market of preferred stocks?
     
    #39     Sep 7, 2008
  10. The implicit has become explicit. Big news.
     
    #40     Sep 7, 2008