Spiga

Bear Stearns the "Countrywide" of JP Morgan?


The lack of conviction breaking 12,200 in the last hour of trading yesterday left me with great concern. After the tremendous drop the technicals seem to be showing an extended oversold condition.

The problem with these choppy markets is that we can end up having a crash on a Monday opener. Balance sheets and counter parties are all on the defensive. I suppose the market participants wanted to squeeze BSC for a white night takeover. The question is, what will happen to the paper. April 20 puts have been active. Perhaps that will be the takout price. So much for buyers at 100. I was especially bearish on BSC, their funds are the ones that imploded first back in August 2007. I'm still buying bottoms, and finding some April calls that look interesting on the Naz Comp. Perhaps a hard 1000K dow crash is what we need, a intraday test of 10K, to wake up the penguin and get these call girls in check...

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