Chris, some people had posted that you can’t set a stop loss on a short, so you could lose to infinity (an exaggeration), as the price of your stock soars. Obviously, that is a misunderstanding, as you can set a stop loss.
Now here’s a reason NOT to short WM. From Bill Fleckenstein today
“Q: Your views on mortgage lenders and regional banks are clear. Which I totally agree with, by the way. Do you have any views on the big money-center banks: C, WFC, WB, WM, etc.?
• They should all be hurt to some degree– who knows what is really on their balance sheet. I think WM is the most vulnerable… but supposedly it’s takeover material, so I have stayed away.”
BTW, Bill Fleckenstein also wrote today that he expects the housing and stock market to crumble beginning this month. When I asked him about a fall rally, he said definitely not. Chris, do you consider him inflexible too?
