After Market Commentary

More Bad News Pummel Stocks Down 360 Points

By Mike ⋅ November 7, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

We seem to be deluged by bad news almost on a daily basis. This time it was Washington Mutual’s warning that loan defaults would continue at it’s current pace and then in the middle of the day, the Attorney General accused Washington Mutual of collusion to artificial inflate home prices. Anyone long these stocks should be very worried at this point although panic selling has yet to be seen in these financials. They are standing on stilts right now and any new bad news can push them easily over. Washington Mutual was pretty much downhill untill 1pm where it went sideways for the rest of the day. Around that time, I noticed COF on my alerts and started shorting and scaled up to a small position. Made some good money on this short in the afternoon. These Credit Card companies seem to be the next mortgage insurers so watch yourselves on the long side on them.