Capital One Financial: Trading Against the Crowd

When less than a couple months ago Meredith Whitney upgraded shares of Goldman Sachs (GS) near the $150 level, reiterating her sell rating in shares of company Capital One Financial (COF), we urged investors to avoid shorting COF since its upside on a percent basis was higher than Goldman Sachs itself at least short term. The stock market proved us right, while Capital One Financial rallied above $34, our target on the stock, shares of Goldman Sachs only gained 12 points since then, less than 10%.

We believe an excellent job has been done squeezing institutional and retail shorts in the company Capital One Financial to the $34.9 level. At this point it is guaranteed most of them closed their short positions with heavy losses.

Recently, we updated our bullish view on shares of Capital One Financial when several articles were published on the internet by retail amateurs on SeekingAlpha.com and elsewhere, inviting investors to sell short Capital One Financial.

A professional contrarian view based on complex algorithm trading and several technical indicators made us believe the stock could in fact reach the $34 level never recommending it to sell short avoiding heavy losses.

Beyond Trading recommended to close long positions in Capital One Financial (COF) at $34. Shares of the company are currently trading at $34.9

Disclosure: No position in (COF) at the time of this article

Comments

[LoveShorting:]

as a small timer, mostly just as a hobby, I am still short COF (and GS)
and can afford to stay in a while longer. I won't get all my money back
but man it will feel great when those plastic-pushing a-holes finally
suffer an overdue correction to the downside.

Aug 11 09:17 AM

[Beyond Trading:]

Fair enough but the truth is that before making fortune shorting you could have made a fortune long selling when we told subscribers to do it. By doing so, you could have benefited from both sides of the market instead of losing your capital shorting while the uptrend was intact.


On Aug 11 09:17 AM LoveShorting wrote:

> as a small timer, mostly just as a hobby, I am still short COF (and
> GS)
> and can afford to stay in a while longer. I won't get all my money
> back
> but man it will feel great when those plastic-pushing a-holes finally
>
> suffer an overdue correction to the downside.

Aug 11 11:18 AM

[BPYHO:]

I've been checking out your site....Does one HAVE to sign up for an account to get the your email updates/stock picks?

Aug 21 08:41 PM

[Beyond Trading:]

We are currently closed to retail investors. Thank you for your interest


On Aug 21 08:41 PM BPYHO wrote:

> I've been checking out your site....Does one HAVE to sign up for
> an account to get the your email updates/stock picks?

Aug 26 08:23 PM