Fat Arby

WaMu: WSJ Backs Up My Sell Recommendation

shorty

in troubled times, it's never too late to maintain the trend. Just keep in mind that bull rallies can scare you into taking a loss. Keep reading the news for any major developments in WAMU like mergers, buyouts, etc... but until economic conditions improve there is no reason why buyers will be greater than sellers. I hit myself in the head for having sold my 19 puts too soon then my 16 puts at 12. If only I had had a bit more patience I would have doubled my profits or more.
tHE bigger question is why? why would a bank with such a large market cap and so many outlets lose so much value in such a short period of time. What hapenned? These are the underlying philosophical tenets which you have to get to know first; then, look at the technicals and choose an entry point.
The thing might very well rally past 11, but keeping it above resistance at 12 is a tricky thing.
Honestly, if I had 1000 spare bucks I would short it; Better yet, I'd wait until march 26-28 and catch the price action. If it looks really weak, then given the continuing erosion in financials it will likely fall further. The long put, strike of 9 dollars, closed today at ask of 155 dollars. If you wanted to buy, say, two puts, you could buy one tomorrow right at the open and then wait a week or two and see if you can't find that put cheaper , say, 100 or less dollars.
Is late march/early april going to send this market up again past 11900? Naw... The international scene is bleak, and China is beginning to look really bearish, so it's a good bet , imhop.


S