Mondays recap.

Well in the first week of January I made mention of the collapse of Google. The Internet giant was trading around the $575 area at that time. Wow! were we dead on! The first target on the downside was 525 then 450 then a test of the 425 area which is where we started today’s trading but are now below that level. Google will see closer to $330 are before the summer is up. Prices in the market seem to be tracking to summer 2004 prices and I suspect this is where a very short term bottom will be found.
What can I say about FNM, it is in a death spiral to the low teens which was called 3 weeks ago when it was $30, now trading at $19. Citibank, Bear Sterns, Lehman and Goldman are also in a spiral down but I believe they will soon get a catalyst to stop the bleeding. Citibank was an awesome call for sub $20 and Goldman which is holding up fairly well compared to the other brokers will soon break down to their levels. Again I am expecting a bounce in the Investment banks here as I think there might be some catalyst in the works to prop them up, so please be diligent on that sector trade.
This week I expect us to get some nice moves in the market lets not jump in without stops as the market to be seem to be oversold and we might be due for a short term bounce. Where does the bounce takes us is the more important question.


OPEN PLAYS

SHORT SOV $12.30, now $9.91
OIH 180 PUTS @8.75, now $12.85.

Two more WINNERS!!!!!!!!!!!