TG Fantasy Stock Market League - Page 18

xTYBALTx · 07-21-2008, 09:51 PM

Wachovia was up 2.7% on the day.

I find that items such as operational shutdowns, stock dilution, capital raising, while expected to decrease the value of a stock, often have the opposite effect. The market is so nervous about the downside potential of these distressed companies that the any news which involves them addressing a problem without declaring bankruptcy will actually ease nerves and increase the value of the stock.

http://finance.google.com/finance?q=NYSE%3AWB

**leejo** · 07-21-2008, 10:49 PM

Quote:

Originally Posted by USN_Squid

AWO --no press release yet

AWO? Wachovia's ticker is WB.

To short a stock enter the ticker and instead of "buy to open" select "sell short". Tricky, I know, so don't feel too bad. For future reference, clicking on the little arrow that points down next to the list box will show all available options.

FWIW WB was over 50 a year ago and was under 10 last week. I don't know if now is the best time to short that stock, but whatev...

**Sabre_Tooth_Tigger** · 07-22-2008, 12:50 AM

**USN_Squid** · 07-22-2008, 01:06 AM

Wachovia exits wholesale Mortgage lending business. And yes it's WB not AWO, wrong wachovia I guess.

Tybalt is right, this could actually spur confidence in their future strength as a company. We'll find out tomorrow, but I would expect some nice profits on shorts early in the morning at least. I'm going long and we'll see how that works out.

**Sabre_Tooth_Tigger** · 07-22-2008, 06:03 AM

opps, forgot your tip. Hope the banks dont dive again because of this, it may even be seen as prudent

Quote:

Shares of Wachovia dropped more than 5 percent in after-hours trading following the announcement. They closed the regular trading session up 21 cents or 1.6 percent at $13.18, near the bottom of their 52-week range of $7.80 to $53.10.

5 percent is positively healthy

Quote:

Big banks, such as Bank of America and National City Corp., have stopped making loans through brokers entirely, relying instead on their loan officers. National City said it was forced to do so by a continuing downturn in loan demand, while Bank of America said it saw better "long-term opportunity" in working through its own loan officers.

xTYBALTx · 07-22-2008, 12:18 PM

Wachovia is up a further 6% right now, but volatile.

**USN_Squid** · 07-22-2008, 12:21 PM

WB dipped to 11.76 and is now up to over 14. I got in at 12.10 at open and sold out at 12.84 for a quick $1500 profit.

xTYBALTx · 07-22-2008, 12:24 PM

Awesome. Notice that AAPL is trading down over 12% right now? It opened down about 15%.

**USN_Squid** · 07-22-2008, 12:30 PM

Quote:

Originally Posted by leejo

AWO? Wachovia's ticker is WB.

To short a stock enter the ticker and instead of "buy to open" select "sell short". Tricky, I know, so don't feel too bad. For future reference, clicking on the little arrow that points down next to the list box will show all available options.

FWIW WB was over 50 a year ago and was under 10 last week. I don't know if now is the best time to short that stock, but whatev...

Isn't there a rule that you can't short a stock until there's been an uptick? I thought I saw that somewhere. That's the only thing I can think of that would've prevented me from executing the short. Probably a good thing, although it would've worked there was only about a half hour window where WB dropped and it's been up since.

xTYBALTx · 07-22-2008, 12:59 PM

I don't believe that there is any such rule. Short away!

xTYBALTx · 07-22-2008, 05:30 PM

WB closed up 27% today.

**leejo** · 07-22-2008, 09:52 PM

Quote:

Originally Posted by USN_Squid

Isn't there a rule that you can't short a stock until there's been an uptick? I thought I saw that somewhere. That's the only thing I can think of that would've prevented me from executing the short. Probably a good thing, although it would've worked there was only about a half hour window where WB dropped and it's been up since.

That rule was eliminated last year. Last week the SEC implemented some emergency measures to curb the practice.

Think about it. If you're a market maker, and you want to drive a price up, it becomes more and more expensive for you to do that.

If, however, you sell a zillion naked put options, you drive the price lower, and it costs you absolutely nothing. Sell some more, and you make more!

I bet this rule is being discussed in certain circles. It certainly creates a considerable headwind once a business gets caught up in a short-storm. It's just so easy to keep shorting it to death, and all the traders make money.

xTYBALTx · 07-23-2008, 01:43 AM

It'd be funny if you could only go long on a stock after there had been a downtick.

jbiloh · 07-23-2008, 02:23 AM

The financials are oversold and (for those who remain well capitalized) are beginning to become increasingly attractive for the broader midsummer rally.

Delta*RandyShugart* · 07-23-2008, 02:15 PM

is it too late for me to pick bear stearns?

07-21-2008, 09:51 PM	#256 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League Wachovia was up 2.7% on the day. I find that items such as operational shutdowns, stock dilution, capital raising, while expected to decrease the value of a stock, often have the opposite effect. The market is so nervous about the downside potential of these distressed companies that the any news which involves them addressing a problem without declaring bankruptcy will actually ease nerves and increase the value of the stock. http://finance.google.com/finance?q=NYSE%3AWB __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-22-2008, 12:50 AM	#258 (permalink)
Sabre_Tooth_Tigger Join Date: Mar 2007 Location: افغانستان Posts: 2,608	Re: TG Fantasy Stock Market League __________________

07-22-2008, 01:06 AM	#259 (permalink)
USN_Squid Join Date: Oct 2003 Location: Denver Age: 38 Posts: 3,173	Re: TG Fantasy Stock Market League Wachovia exits wholesale Mortgage lending business. And yes it's WB not AWO, wrong wachovia I guess. Tybalt is right, this could actually spur confidence in their future strength as a company. We'll find out tomorrow, but I would expect some nice profits on shorts early in the morning at least. I'm going long and we'll see how that works out. __________________ New to TG? Start here!

07-22-2008, 12:18 PM	#261 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League Wachovia is up a further 6% right now, but volatile. __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-22-2008, 12:21 PM	#262 (permalink)
USN_Squid Join Date: Oct 2003 Location: Denver Age: 38 Posts: 3,173	Re: TG Fantasy Stock Market League WB dipped to 11.76 and is now up to over 14. I got in at 12.10 at open and sold out at 12.84 for a quick $1500 profit. __________________ New to TG? Start here!

07-22-2008, 12:24 PM	#263 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League Awesome. Notice that AAPL is trading down over 12% right now? It opened down about 15%. __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-22-2008, 12:59 PM	#265 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League I don't believe that there is any such rule. Short away! __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-22-2008, 05:30 PM	#266 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League WB closed up 27% today. __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-23-2008, 01:43 AM	#268 (permalink)
xTYBALTx Join Date: Aug 2005 Posts: 3,919	Re: TG Fantasy Stock Market League It'd be funny if you could only go long on a stock after there had been a downtick. __________________ A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek "$250,000 a year won't get me to Central Park West."

07-23-2008, 02:23 AM	#269 (permalink)
jbiloh Join Date: Jul 2008 Posts: 13	Re: TG Fantasy Stock Market League The financials are oversold and (for those who remain well capitalized) are beginning to become increasingly attractive for the broader midsummer rally. __________________ Jon Biloh - Pub Game Servers Home of the QUALITY $1 / Slot Server pubgameservers.com

07-23-2008, 02:15 PM	#270 (permalink)
DeltaRandyShugart Join Date: Dec 2007 Location: Southern Westchester County, NY Age: 28 Posts: 2,382	Re: TG Fantasy Stock Market League is it too late for me to pick bear stearns? __________________ You ever have one of those nights where you wake up in the morning and you don't know how you got home? - Dispo P.I.C. No FS!!! 9/11 - Never Forget RSS Feeds: Bamboo

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