Comments on: EARNINGS UPDATE – WHAT TO EXPECT FOR Q2 AND BEYOND

By: prescient11

prescient11 — Tue, 14 Jul 2009 04:46:48 +0000

James, I’m a big fan of short WFC in the long term. They don’t have the trading desks of GS and JPM and thus are subject to the absolute shit loans they have written.

I can go over WFC’s balance sheet to the tee, they are full of a steaming pile of crap. imho.

By: James

James — Tue, 14 Jul 2009 03:36:49 +0000

Prescient I am thinking the same thing. How can Wells Fargo and JP Morgan be so high and calls are screaming for them to go higher towards their credit inflated levels? If the markets are going higher, some of the financials need to correct a little because they just can’t keep going up forever…

By: prescient11

prescient11 — Tue, 14 Jul 2009 03:29:21 +0000

I’d have to admit, if GS was not gaming the markets I would short them here as well. All time high at the credit bubble was near 200. And now they sit at $150??? I guess their assets haven’t deflated at all, eh?

I have a feeling this is all going to end very, very badly.

By: James

James — Tue, 14 Jul 2009 02:26:01 +0000

TPC you also cannot discount the huge amount of economic news we are getting out this week as well. I’ll be surprised if GS is up by the end of either tomorrow or the next. Everyone knows they are going to report record earnings. For about a month now. If news is bad tomorrow, you will see a bumpy ride because GS cannot compete with economic news.

By: TPC

TPC — Mon, 13 Jul 2009 17:02:37 +0000

Gray,

I wouldn’t consider getting short again until after the banks finish reporting. We might just see a repeat of last quarter albeit on a smaller scale in terms of percentage upside move.

Definite long bias heading into the next two weeks.

By: BGray

BGray — Mon, 13 Jul 2009 15:45:58 +0000

TPC,
So what’s the plan? Are you going long early in the earnings then neutral for later? If memory serves me correctly, I believe you said last week after you closed out the shorts that you’re looking for some upside earnings surprises. M. Whitney upgraded GS this morning to $186 and said BAC is good value. I wonder what her longer term outlook is for financials.