Bank Run Up : Buyer Beware

Discussion in 'Economy' started by Indiana Oracle, Apr 14, 2009.

  1. Indiana Oracle
    Offline

    Indiana Oracle The Truth is Hard to Find

    Joined:
    Mar 17, 2009
    Messages:
    639
    Thanks Received:
    65
    Trophy Points:
    28
    Location:
    NW Indiana
    Ratings:
    +65
    If you are participating in the bank stock run ups such as BAC, WFC, pull your stops up.

    Volume is suspect, Goldman appears to be driving the whole thing, the rest of the market is not following. This has every appearance of a trap to prop up the balance sheets of these banks ahead of further asset right downs.
     
  2. RodISHI
    Offline

    RodISHI Gold Member

    Joined:
    Nov 29, 2008
    Messages:
    10,392
    Thanks Received:
    1,858
    Trophy Points:
    280
    Ratings:
    +5,047
    More creative accounting?

    I'm waiting for the IRS to nail CITI and WF for all those erroneous 1099's they use to buffer their tax liability and their actual losses.
     
  3. stekim
    Offline

    stekim Just Plain Awesome

    Joined:
    Apr 9, 2009
    Messages:
    101
    Thanks Received:
    10
    Trophy Points:
    6
    Location:
    Atlanta
    Ratings:
    +10
    That post made no sense. A bank's stock price does not impact its balance sheet unless it's selling shares to raise money. Which none of them are currently doing. Jeez.
     
  4. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,746
    Thanks Received:
    11,051
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,075
    I have no idea if the market is about to roll over or not. However, financials have been going up on huge volume. And it is not just the banks that are going up. It is also technology, consumer, materials and industrials. Over 90% of the stocks are above their 40-day moving average, or at least they were yesterday. That has only happened seven times before, all occurring during the 1991 and 2003 bottoms.

    Banks have fallen 85% from their highs a few years ago, on par with the declines during the Great Depression. However, 75% of all banks in the United States were profitable last year and are expected to be profitable this year. Was it wise to buy or sell during the Great Depression after stocks had fallen 85%? You are betting against history if you are betting against the banks here.
     
  5. Indiana Oracle
    Offline

    Indiana Oracle The Truth is Hard to Find

    Joined:
    Mar 17, 2009
    Messages:
    639
    Thanks Received:
    65
    Trophy Points:
    28
    Location:
    NW Indiana
    Ratings:
    +65
    Then stay in them and leave your stops distant. Be my guest.
     
  6. Annie
    Offline

    Annie Diamond Member

    Joined:
    Nov 22, 2003
    Messages:
    50,847
    Thanks Received:
    4,644
    Trophy Points:
    1,790
    Ratings:
    +4,770
    Yep, I posted this like 2 weeks ago:

    Banks Plan To Buy Toxic Assets From Each Other

     
    • Thank You! Thank You! x 1

Share This Page