BW - glad to see I'm not the only one buying BAC, freddie and fannie, etc on ridiculously low P/E ratios

up 70% on the maes and macs the last week, 40 in BAC - life is good :-p

PS - han, did you put your money where your mouth was and short bac at 19?  If so - has it felt nice to lose 50%, or not so good?

i got in bac at 28, out at 26 - decided to watch a bit longer and see how far it would continue to fall.

Got back in at 19.54 - couldn't resist the 14% dividend combined with the 9.00 P/E and the general knee-jerk reaction that had driven it down - dont you worry about me

I saw your call - i laughed pretty hard, because it seems as though we were buying at dang near the same moment, to be real honest.  I stayed out of C, but I got in fannie and freddie at 7.40 and 4.50 (right at the start of the day... they were both down significantly by the end, but i was way, way up).

Meaning? This year, the financial side of my portfolio is officially ahead of everything else - shipping, led by FRO (Steady play) and OSG (in then out in about 2 months) is really the only particularly close industry, at that - mostly just because i was out or in small until these past couple days, and launched off from there

Yes, Congress had better sense.

Its all election year pandering.  The correction has to work it self out in the market, and not with a socialist big Govt./brother  infusion.

@ Micro.

are you out soon ?  or are you waiting for BAC to report....btw, I meant C not BAC with their better than expected report.
BAC actually reports this week.

I think Im in until BAC reports.  I have a feeling we have a MAJOR financial correction coming.  Reason ?
Merril etc. the big brokerage houses ... NOW... are getting the after effects of the bad mortgages.  The perceived "Safe" loan packaged bonds they purchased ...AFTER.. the banks let them go. 

The ripple starts w/the banks and the notes they held, and now trickles down to the bond holders of the packaged loans that the banks sold off. 

Im not sure where freddie and fannie fall in that sequence.  Maybe you can help me out ?  Where would they fall.  About in this spot w/the brokerage houses ??  Or with the major banks.  Looks like BAC and C (the majors of the US) are out of the fire and turning the corner.  Where is Freddie and Fannie.....and the brokerage houses ??

hehe... IC the major source of Deep inside stock chatter.....imagine that,

@ Dragon.
Thats because you are a socialist. 

Its the difference between a Publically held company, and a privately held company.

BW - I'm fighting myself over when to move out - I've already trimmed of freddie and fannie with a belief I might get back in big again later.  As to BAC and C - I do feel like a correction is coming - I don't see how it can't.  However, I have trimmed my positions there as well. Though I've missed a few this way, on average I come out ahead - when I make an investment that I believe has long term value, and it quickly experiences a large spike (which all 3 of mine did) - I tend to at least trim, and most times (not here though, based on the economy wide correction i'm imaging) to completely maneuver out.

Now, has this cost me here and there before?
Sure

But when a you hit for 50% in 3 days, it's time to consider that perhaps there has been a short-term overcorrection and that you can get in again on the long term correction you foresee a little more cheaply.
The other side of my logic in such a decision is that when I buy something thinking long term, and it jumps 50 - 100%, the stock is no longer exactly what I thought it was and bears a little more study - so why not take 50% and think about it some more in these scenarios - especially if the stock is knocking on the door of what you thought the implicit value was - when you expected the explicit value to be around that in 6 months to a year.

In other words?  I'm still in, and could miss out on 10 - 15%, which sucks, admittedly.  But there is officially as much short term downside risk as upside - which wasn't the scenario when I got in.

Some stocks just this year that i have pulled out on using that mindset and won:

OSG, CF, ETN,  WNR, STEM

Have i lost in that before?  Absolutely, but if you make a killing and can run away and think about it for a week or two - it has a strange tendency to be worth it.

Also - I don't really need the extra percentages desperately this year, so i'm willing to be a little more of a profit taker and a little less of a risk taker given the usual volatility (compared to the market) of my portfolio, and how good I already look to investors over the last 7 months.

I expect to watch for a week, lose some points, and get back in long term - but I don't mind that, given that this year alone I've saved myself a lot of pain by doing just that.  So I can't fault you for staying fully in, but I'm about 50% of the positions that I hit with - basically playing with *only* house money at this point

Im not in bad shape this year either.  Actually up, but barely.  Relative to the markets, I am ok.

As to needing a move,.....well I never look at plays that way.  I agree w/you, you should ALWAYS take a little off the table.  Realize some of that bold move.

I just think....and hell, I could be wrong....that financials are good for a lot more.

BAC is still at a P/E of 11 w/a 9 yld.   I mean, that is insane.....even after the run.

Pre-Market: 28.50 +1.01 (3.67%)  Jul 21 6:30am ET
BAC reports this mourning.....if they beat expectations......fasten your seat bealt.

I think Im in past today.  Maybe tomarrow I take some off after todays run......

OR...

If they are bad numbers....Im out ASAP.

OK,  Im out in the mourning....Just the bad news the sector needs.

Amex...bad report.
Even though thats more an economic bell weather call, Amex is reporting a lot of bad accounts.

Im taking 75% of my position of the table in the mourning.
Hope I can get my strike.

Im kicking myself in the ASSSSSsssss......I was going to set a 30.25 stop sell.   Damn.

Oh well.

I have another stock to watch....for those who care.

Aetna.

I have an eye on financials though.......not sure what to think now.

Check out Aetna.  What a beaten down giant that is.

US borrowed so deep from its future that now the future cant deliver

corruption is like cancer - it eats your body until the body can no longer function and collapses

lol, BW - I don't usually move that quick, but I saw it and thought...

"Gee, I agree with him, I just haven't seen it before... game on."
Because I had some bling on hand :-p

PS - was wondering where HAN is, and how he's enjoyed the 80% run up on BAC, along with the buybacks announced today... but whatever I guess...