Bye Bye

Bye Bye market I will meet you downstairs.

Sweet Sixteen

Get ready for the sweet sixteen party for Citibank.


WELCOME to teenage years CITIBANK....

Hate to say I told you so

Lehman Brothers says it will raise $6 billion through a stock issuance, and expects a second-quarter loss of approximately $2.8 billion due to more pain from the credit crisis.

The nation's fourth-largest investment bank said Monday it expects to post a loss of $5.14 per share for the quarter ended May 31. It made $489 million, or 81 cents per share, in the year-ago period.

Lehman says it will raise capital from both common and preferred stock.

Stock is down 12% pre market and as I have been saying for awhile there is no way these investment bank dont need more capital infusion. You can listen to all the ANALyst (pun on ANAL) all you want, they truly know nothing.

Citibank will be a teenager today for sure and I expect the SKF to go to new highs soon than later. As i predicted before the end of summer, so we will see soon enough.

Trade Calls: Guidance

Most Trade calls are swing trades to be held for a target. Once target is achieved I am usually out only if I say take 1/2 off and ride the rest.
I am looking at some options plays this week as next week friday is option expiration. Lets see if we can rack up some huge winners this month.

Remember only high probability trades are taken here and that's why the winners here are always huge.

Got some new ones up my sleeve just waiting for the market to say jump on

Trade Call Update: TWM

TWM was called on May 29 @68.87

Target is $75....
This is the second time calling TWM on the blog. Let's see if it is a big winner again

CAN IT BE POSSIBLE

Can it be possible to have Oil @$170 and Gold @1200 without having a global slowdown. Well Prices seem to be saying we are possibly going to attack those numbers in the next 18 months. What this will do to the worlds economies I dont know but it can't be good. I am predicting the China growth rate to decline to the 6.5- 7% level after the Olympics.

Next Week

It will be interested to see what the talking heads will be saying about friday's action. I keep on saying we heading towards the March low's but all we hear from the analyst and investment bankers is that March lows was the buy of the lifetime. OK will I guess i missed it just like I missed buying pets.com or shoe.com back in 1999 because I would be so rich now!! NOT!!
From what I saw on friday LEH looks like it wants to be the next Bears Sterns, they are killing that stock. FNM, Citibank and SKF are the best places I think to play this downturn in the financials. Currently I am up $30 on my 1/2 SKF, yeah baby, that's how we do it.
WFMI I am still short via some 30 puts and I will be rolling them into July's when they expire. I am -.70 on them but I have 2 weeks left and I think we will be $2 lower on that stock by then, so I am not bit worried.
TWM from the Trade call now looks like it is ready to move and I think it does.
I think the agros get hit last and when they do they will be a nice play, just not time yet, so dont rush in on the short side on those. Short the weak sectors, retail and financials and you will be ok.


Have a great weekend