No idea if this is true but there is a rumor going around that has a little credibility that the SKF might be halted. Could generate a massive squeeze.
edited to provide possible source: from yahoo messageboard for skf: Rev Shark SKF Rumor 3/5/2009 3:13 PM EST I'm hesitant to post this but I have heard some vague talk about the possibility that the SKF might be halted. As Jim Cramer and others have noted it may be the tail that is wagging the banks. I have no idea if the rumor has any legitimacy but I think it is important to take note of given the action in the SKF and the banks.
Very true Ivanovich. However I believe that "Rev Shark" is a Realmoney dot com writer. So the Yahoo message board post is probably a copy and paste of the Realmoney article.
It is what it is - I only posted it because it could cause some serious squeezing and was just trying to help out if I could. No harm no foul. And yes - the original comment came from Jim DePorre, I just didn't mention that. I don't think he would have brought it up if he thought it hadn't had a least a little meat to it.
No, I appreciate the post - I'm glad you posted it. I just think if the source is the yahoo boards, then I have to chuckle. If it's something more substantial, then great. Halt the bastard.
SKF filled the gap in 11/2008. RSI is overbought too. I hope they hurry and remove the short ETFs for the shake of our health. This market is hurting so many people that is unreal. We all have or know someone who has money in 401K, in the market. I traded SKF today a few times. Unreal.
this blame the investor, speculator, etc is back again huh. if there were more value than risk in the banks, then someone would buy them and the shorts would get squeezed. if you are leveraged 40-1, then you need what, a 2.5% drop to wipe out your equity. in the depression, 8000 banks were wiped out. 5000 more went out of business in the 80s. in this cycle, we've lost like 25 so far. we have a ways to go. let's start putting the blame where it resides 1. congress for pushing fannie to back subprime and other risky loans in exchange for implicit backing (just imagine what's going to happen with the politicizing of loans now that they outright own major, major banks) 2. congress, particularly barney frank, and christopher dodd, for not only letting, but outright encouraging fannie to back more loans to unworthy bororowers and hence let fannie get leveraged 200-1 for the sake of the "american dream." (frank is on record saying fannie under government control is a great "opportunity," again, to make loans that they shouldn't be making). 3. congress for passing laws like the Community Housing Act forcing banks to lend to unworthy borrowers lest they be sued. 4. the Fed for providing artificially cheap money to the banks for years if not decades, making it fundamentally unattractive to save. 5. the SEC for letting leverage in banks go to 40-1 from 12-1 in 2004. 6. the banks themselves for poorly managing their risk. 7. borrowers who didn't do their due diligence. let's not blame investors and speculators for recognizing as much, and for realizing the true value of these banks are or will be < 0.
Stop blaming the inverse etfs for the drop in the financials, without these etfs the financial stocks would still be worthless. I'm bearish however SKF is looking EXTREMELY overbought. I see $150 soon.