Jase

Banks: The Final Countdown?

What's the consensus for the financials during this 4-day inauguration trading week? TA points to a retest or break of November lows, but the market rarely does what we anticipate--anyone care to provide a case for a large bullish move/recovery for the financials this week? If so, upside targets for XLF, UYG, FAS? If not, what support levels must hold for each of these?

On WaMu's Birthday, JPMorgan Takes the Cake

Washington Mutual made extremely, extremely bad bets. Capitalism rewards appropriate risk, but it categorically decimates prolonged gluttonous behavior. Are any of you seriously surprised that WaMu failed? Are you serious?

I applaud JP Morgan's patience and opportunistic (if not predatory) actions. Clever bastards. Good for them. And I won't shed a tear for WaMu's shareholders (don't talk to me about post-bankruptcy pain, I was a shareholder of BRLC and IMBD; both went tits up earlier this year but I was absolutely aware of the risks involved).

I'm certain of one thing, when all this nonsense settles down (weeks, months, years from now), those that are left standing will be stronger. While it may not be apparent now, I'm of the opinion that that benefits us all.

If you think my comments are crass, I recommend that you skip work tomorrow, arm yourself with a bowl of ice cream, and sit down cross-legged in front of your TV and take in a few hours of old-school nature shows. Kenya, lions, impalas, African plains, all that.

Pay close attention: weak things die.

Happy Birthday WaMu.

No, the Financial Crisis Is Not Over

non1: sorry mate, SKF will break $300 by the end of the year. USO is undergoing a time-correction, you'll see it rally by week's end and continue next week. Sure it'll hover around the $100/barrel mark, but a barrel of oil will break $150 before it breaks $80. Ultimately, however, I do believe that by the end of 2009 we could be back down below $75/barrel.