Fat Lazy, Why are you farting around trying to be a day trader? Things would work out better if you just short CFC at $20 and hang tight for the rest of the year.
I'm not trying to fart around being a day trader. Just trying to take advantage of the current market volatility that won't last that much longer (it will end one way or the other). Personally, I don't think we can tell we're in a bear market (yet). The markets have been wildly swinging around over the past couple of weeks back and forth trading on rumors and speculation. As such, I'm moving in and out of positions of certain companies for which appears to be range bound during these days of volatility. Namely, picking companies that normally are "boring", with no forseeable news (good or bad), but are now bouncing around due to the general instability in the markets. Any company that announces earnings, I won’t reenter the company until after earnings.
I don’t want to short CFC, because I think there’s a bit of uncertainty around it right now. Get a few banks to “upgrade” to hold from sell, or get a bailout from the gov, or the fed does an unexpected rate decrease more than 50 basis points, I could be hosed. The thing I see slightly different from CFC from others is that is doesn’t appear they are having issues wrto to getting credit. As far as changing their business model from doing only conforming loans..Bad news for Kalifornians, but there are plenty of markets that aren’t dependent on jumbo loans out of state.
Just my opinion. If I had to bet, I would put a bet on a long position at this point versus short, but again, too much uncertainty for me to play this one.
