That is the exact reason the stocks are going down, because the banks are getting raped.
Twenty to thirty sells and then one buy. Somebody buys at 14.00, then the shorter will buy at 13.65 and then immediately sell for 12.00. Then he has dropped it a dollar again and starts selling again for 12.00, then starts this cycle all over again. A good shorter will just work his way down and everybody will go for it and keep buying $1.00 over his current price until the stock is worthless by the end of the day.
I am not a shorter, but to maximize your money you really need to be (in + and minus terms), but I am not that confident in shorting and don't want to deal with margin accounts. I am a cash up front kind of guy.
Last edited by dread; 01-21-2009 at 12:25 AM.
Quite interesting! I just placed a limit order for BAC for the morning at $5. Obama's first course of action is going to be to stabilize the banks, and when they do, BAC will jump. Was thinking about getting into a banking ETF as well.
The financials have to come up. Good Luck!
i bank with bac, i have alot of faith in bac, just bought bac at 5.74, might load up with more. BAC is one of those banks i have no doubt will survive, look up the san fran eqrthquake in 1904 and how bac was the only bank that survived that, BAC is a SURVIVOR BABY!!!!!!
tripp what do you think about abk I have a order @ .99 for 500 shares.. I wanted to get it yesterday but missed it because of watching Bac in the last 3 minutes...
Last edited by Sworntwofun; 01-21-2009 at 12:30 PM.
dunno nothing bout abk but ill look into it