Thursday, February 19, 2009

Staring Into the Abyss

In case you missed it, the video above is Rick Santelli from CNBC voicing his opinion on TARP, the housing initiative and the stimulus package. Evidently the market mirrored his passion today as they pretty much sold everything they could. Energy showed some strength, but the toxic beast known as the financials, fell of a cliff and the XLF made another historic low. FAZ was brilliant for me again and unless the financials go zero I just don't know how much may be left for me in that one, although a total surrender of all things equity may do the trick. I've squeezed many pounds of flesh from this one, and next to SKF, it has been the greatest security I have ever owned.

Bank of America has joined his good buddies at the watering hole, AIG,FRE,FNM and C, the most expensive one is buying the booze, but BAC forgot his TARP card so as usual it's on us. I wish I took a screenshot yesterday as I opined that we may never see it at $5 ever again. My constant rant since last summer that COF would be $5 looks to be coming a reality too, amazing times for sure. The financials will soon acquiesce completely and we will know who the survivors will be by the action in their respective stock prices. The separation of the wheat from the chaff will start soon.


George Jackson said...

Santelli was a Blutarsky that made sense! Throwing derivatives into Lake Michigan at a Chicago Tea Party is the funniest line since the tough got going when the Germans bombed Pearl Harbor. Santelli is on a roll! Niiiiiice!

DF said...

Thx 4 posting the Santelli video, your blog is & has been on the money with this market.
You can also polish up the hearse for WFC (Wells Fraudo) & GE (General Electrocution) which both look like they will be picking a casket or yearn out soon.
Dont forget the REITS which hit all time low today--
Continue the good work.

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.