Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Probably it may do well for the next few days. After that it's more of a problem if the SEC leaves it short selling ban in place. It's due to expire in 10 days but they hinted of making the short selling ban on financials permanent. How's that for a vote of confidence.
Anyway, SKF does not - repeat does not - short some financials but used synthetic shorts to achieve the same result (It's too difficult to explain synthetic shorts here). So the SEC short ban has no effect on SKF. At some point, it may good to buy this for a longer haul, but maybe not yet. _________________ It's already over, now it's just a matter of adjusting.
I bought 50 shares at 108 and sold them all at 178. I held them for about 6 months. It then raced up over 200 hundred in a matter of days and then the Fan/Fem bailout came through and it dropped down to 130 in just a couple of days.
To say the least it is very volatile.
It is not too late to buy it. But it is set to go lower over the next week or two I am guessing. The market is desperate to rally right now, it is going crazy on the slightest good news. I bet SKF will go down again below 110 buy some then and wait, all hell is going to break loose as all these financials have to go raise more capitol.
Join the ticker forum their are some real traders on there and some real pricks too they will give you some more advice.
But SKF is a real traders stock which I am not and do not bet more than you are prepared to lose on skf.
Posted: Thu Jul 31, 2008 9:16 am Post subject: Re: UltraShort Financials SKF
The ultra short shares can be a pretty wild ride. Definitely not for the faint of heart. Keep in mind though that you're betting on the downfall of the US banking system. To say you're betting against the house is an understatement. Just when the world seems its going to come to an end and these funds will look like they'll shoot to the moon, Bernanke will come out speak some gibberish and the ultra shorts will crash.
There's also a little matter of the government making step towards banning shorting all together (which usually happens as a country moves towards socialism/fascism)
The other thing to consider, and the main reason I abandoned the Ultra shorts, is that they're loaded up on leverage and derivatives, both of which give them they're (fictitious) 2X values. In todays environment that means there are huge third party risks that the funds could be shutdown and worth 0.
at the end of the day its a crap shoot, but always remember "The longer you play, the more you'll lose"
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