tag:blogger.com,1999:blog-2335748440449035592.post5700142331426804889..comments2008-07-17T14:02:56.499-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2335748440449035592.post-21711392816079407182008-07-17T14:02:00.000-04:002008-07-17T14:02:00.000-04:00Nitin<BR/><BR/>No bank will be immune - they are all in a terrible sector. JPM was celebrated this morning but they&#39;re reporting increasing defaults in prime mortgages etc.<BR/><BR/>The consumer is in trouble which means the banks are in trouble.<BR/><BR/>That said, if you put them in a ranking - the names like JPM, and WFC are at the top of the heap. But it is a very bad heap. And the best of this heap would be the worst of other sectors.<BR/><BR/>A lot of the banks are doing these &#39;adjustments&#39; - speaking of which was Fannie and Freddie (not banks of course) doing similar things.<BR/><BR/>When things get so oversold like financials it just takes any small spark to set them off in the other direction.<BR/><BR/>We&#39;ll be adding to SKF in size if we get 1-2 more days like this. It has dropped from &gt;200 to 130s now in just over 2 sessions. Breathtaking.<BR/><BR/>One more thing to consider - as other banks falter this will leave more business for the stronger guys. I&#39;d also expect WFC and JPM to acquire assets of some of the weaker names<BR/><BR/>But dont misconstrue my comments as &quot;I&#39;m a bank bull&quot;. These guys all have a lot of trouble in the next 18-24 months. A lot. But there are some that are way better positioned than others - although they will all use those parlor tricks to make things look better than they are. Thats accounting in America the past 20 years - as much art as science.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-75378431122661634152008-07-17T13:46:00.000-04:002008-07-17T13:46:00.000-04:00Hey Mark,<BR/><BR/>Your comments about this article on WFC:<BR/><BR/>http://www.smartmoney.com/breaking-news/ON/index.cfm?story=ON-20080716-000712-1242<BR/><BR/>Loan losses rose 68 basis points, to 1.55% of total loans. Wells Fargo changed its policy on writing off defaulting home equity loans in April. Instead of writing off a defaulting loan after 120 days, the bank now waits 180 days, potentially postponing a major hit to earnings!!<BR/><BR/>Chief Executive John G. Stumpf said in a pre-recorded message to investors Wednesday that the policy change "was made to provide additional time to work with those customers who may be experiencing financial stress but have the potential to resolve their difficulty." <BR/><BR/>ThanksNitinhttp://www.blogger.com/profile/16950286340345498227noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-91224783009036143462008-07-16T16:08:00.000-04:002008-07-16T16:08:00.000-04:00who knows<BR/><BR/>just happy with +23% yikes<BR/><BR/>We'll have to see how much more short covering happens. In Jan and Mar these financials bounced 50%+ when the shorts covered<BR/><BR/>We'll see if today is a trend or just a 1 time thing. Some of the better financials report soon and the mood is so poor hopefully we can get some more juice out of this. With this sort of ETF I am just taking it day by day.<BR/><BR/>I was hoping for mid $20s + originally.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-25835609097361188712008-07-16T15:57:00.000-04:002008-07-16T15:57:00.000-04:00Hey Mark<BR/><BR/>what's your target for UYG?<BR/><BR/>ThanksHongHhttp://www.blogger.com/profile/03575935294024447985noreply@blogger.com