The financials trade is on, going to be the hot trade in '08 and one unwieldy bitch. There will be a lot of money to be made on both the long and short side. Right now, if the stock doesn't tank on bad news to make a new low, probably safe to say short isn't the right side of the trade. Good Luck!
WHEN BEAT UP stocks RALLY on BAD news like bsc,ms it signifies a bottom has been put in place or trend reversal..... However with the financial sector as a whole i think there are many more shoes to drop...I dont want to short or long banks,there are safer trades out there for me... I guess you could start averaging in if your an investor tho.
You can average in while grabbing small bounces. Less risk on the longside and volatility is a welcome event for the financials with buys. More so I think with ultra long ETF's though. I'm not brave enough to buy the stocks, but I'm loading up on the ETF. IMO, real estate as well is a month or two away from being low risk long side positions.