Unless Guithner comes up with something completely out of left field, buying FAZ or SKF should pay off nicely Tuesday. It's hard to imagine that the banks aren't going to sell off.
I also think there's a fairly good shot C is rendered worthless shareholder wise. If I had my way they would completely nationalize the banking system, wipe out ALL shareholder and bond holder value and start building a solid base from which to move UP from. The plan they are likely to reveal will just delay the inevitable. The banks are insolvent, its time to face the music. Look for most of the banks to retrace the recent moves. Of course, unless they come up with some half brained way to keep the stocks propped up. I just don't see it, but anything is possible.
Ones to watch for nice downward moves;
Despite several talking heads ra-ra pom pom waving, I also think MS is in a heap of trouble. They have TRILLIONS in toxic assets on their books from what I've read and I think its only a matter of time before they are back to single digits. But, for now the banks themselves probably are better bets for a short term down move because they are weakest of the weak.
I don't know, call me crazy, but so many people are saying that the market is showing great strength, yadda yadda. OK< fair enough, maybe so, but I see it more that the market has been propped up by the hope that the Fed would bail us out of this debacle. So, we'll see if Tuesday they sell the news, which is my guess, again subject to what news comes.
We're kicking butt, seriously, I gave POT and X short right off their tops Monday, plus our BIDU calls are pretty freakin' amazing! We are rocking both ways! That's the way we like it! Watch oil here, if it can't hold near $40 it may see $20s sooner rather than later, amazing, so much demand destruction, jeez! Asia is struggling, so not sure where demand for Oil is going to come from.
It's sad, and its unfortunate, but we really are in a heep of trouble.
Off to bed, see ya in the am!