nyorker

Short Into the 'Bad Bank' Syndrome

With the banks stock prices at historic lows, I can't figure out how you would gauge the risk/reward ratio of shorting further.

Maybe I'm too conservative, but the possiblity of a 30% return verses UNLIMITED losses (if this GB/BB comes to fruition) seems like financial suicide.

Surely there must be some sector out there that offers a "safer" risk/reward ratio ?

Touchdown: When Do Financial Stocks Hit Zero?

Thinking that If every financial stock in the DJIA went to zero and the dow would "only" lose 331.25 points is pretty disingenious, in my opinion.

Seeing as a large part of the problem with the market and financials is based on peoples "perception" and "sentiment" of what is and is "going" to happen is responsible for much of our problems right now.

If the financials went to zero, you would probably be looking at Dow 4000.

Unfortuantely, hysteria rules the day more than charts do.

A Primer for Trading Citi This Week

"Ban short selling for a year and bring back the uptick rule."

Highly unlikely.

This market right now, is in the midst of "Wealth Transfer".

Wealth being taken from retail (all of us) to the hedge, institutional and big brokerage funds.

Call me crazy, but these guys need to replenish their empty "pots".

The Government knows full well what banning short sales and reinstituting the uptick rule would do.....thats why they have NOT done it.

Not till the big boys are done "cleaning" up.

Heck, if Russia can SHUT their markets down, our government could reinstate the "uptick" rule quickly.

IMHO, maybe wrong, but thats what it looks like to me.