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!!!!!!!!!!!

FNM

FNM is now a teenager!!!!!!
Said is here a few weeks ago right here when it was $30. FNM will be a $10 stock soon enough.


BYE BYE FNM

Investment Banks

Well as most of you know I have been banging the investment banks since last year. I have noted many times that these institutions are the main catalyst of the financial meltdown we are currently seeing.
Bear Sterns is one of those who invested heavily in mortgage derivative and now it is coming to bite them like a shark. Today Bear is down 13% and I will say it again these investment Banks have a lot further to go on the downside. Don't listen to the talking head talking about good buys and bottoms, yep if I bought bear stern on friday I would be down 13% in 1/2 day crazy. Wait for the dust to settle before you think about buying any of these stocks. The thing is in my opinion this is just the start of the downside for them. Lehman, Bear Stern etc have alot of disappointing news to tell shareholders and employees in the next few quarters.

Sorry to be the bearer of the grim news but it is just reality!!!!!!!

MONDAY

Sorry folks I have had computer issues since mid last week. This weekend I idn't run my usual scans as my computer was down. I am up now and have to see if everything is A ok today before I do anything.
In the mean time GOOGLE in death mode here!!! Told you Google will get kill soon enough.
FNM- wow Should have held this one longer, but I did call it to he teens. We are about $21 now from the call @ $29. Oh well sometimes you dont gain as much profit by being a trader, dang it.

This week will be a nice week hopefully I will be 100% up tomorrow