Will you risk money on WM today?

I won't risk money (on the long side) on any of the financials that have been running into trouble. I own SKF right now which sums up my opinion on the sector. Buying stocks like WM, LEH, and recently FNM / FRE is nothing more than a crap shoot. If you want to take big risks for big rewards, I think you'll be better off picking a quality company and then buying out of the money calls.

These companies are constantly lying about their holdings. There's no reason to start believing them now.

Harry,

What do you think about MER? I think at this point its a good buy for a nice bounce. As all financials are taking huge hit. any kind of good news will bounch them back up for fast money.


What is your take on MER, GS and C?

I would hold off going long on any financials until the market has a definitive bottom. We may be approaching one now but I don't think we're there yet. I'm talking about a Jan 22, March 17, Jul 15 kind of bottom. I wouldn't touch C, but would review MER and GS at that time. Still...... I tend to feel like this is playing with fire, and that there are so many other opportunities out there that would respond well to a bounce in the market. You say that any good news will bounce it higher..... here's the latest:

1) Gov dropping $1T - $2T into the economy to bail out mortgages (inflation)
2) Rising, 6.1% unemployment
3) Artificially low Fed funds rate to continually fuel inflation
4) A recent run-up in the dollar that will probably come to an end soon - and the reversal will drive up commodities, including oil
5) Several $100B of option ARM mortgages recasting terms over the next 1 to 2 years

I don't know what kind of good news we can expect to effectively counter the problems I just mentioned.

:bowdown: I agree, but i am not looking for long term, based on the trend lines on the chart i see we will see a nice bounce next week. If i see 7-10% return on my MER investment I will cash out.

I am getting long on AUY (Gold) as I also believe dollar run-up is ending soon.

I am a swing trader so I'm not looking for the long term either. When I am looking for a long position, I still want the fundamentals to be in place. I don't want to have to depend on a technical bounce to get a profit. I want the stock to be fundamentally strong AND for the technicals to be right. That's a lot harder to find than just having the technicals right.

So from that perspective at what appears to be a market bottom, I would have to wonder if there is no better choice out there than selecting something from the financials sector. I would think I'd be able to find something that I didn't have to worry about in the short term or the long term.

Here's a pick that has nothing to do with financials: CALM They are the #1 egg company in the U.S. and the only one that is publically traded. I bought some today and am up in the down market. You want a nice swing trade? I just gave it to you. Now you can let someone else play with fire. I put that pick out to my followers today. I actually bought the Nov 25 option for $7.60, and the bid is currently $9.00! Still....it's not too late for this great company.

Thanks Harry,

I will look at the CALM for sure. thanks again.