New Position: Bot 5 C puts Strike 12.5 June 08 @ 0.30
NLV has not move: $14500
I'm going to get into trading ES mini. A relatively dead market as it slowly churned downward. It goes to show not much buyers out there looking for bargains. No news has a definite impact on the market. All we waiting for its 1Q earnings.
The short in Citi is relatively easy to explain. First off, there were 40,000 of those contracts sold that day - ride the bandwagon. Next off is the lock-up in Auction rate securities market (ARS) is causing a run on the bank - People who had money in Merill or any other wealth management service providers are told to have their money in a relatively safe "money market" account. The money market account they have actually have ARS- which is dead at the moment. And firms are not allowing withdrawal. A lot of high net worth clients will shuffle and juggle b/w these banks. That will be the next shoe to drop. Financials are still dead money. I can be wrong about them, but the risk of going long the financials are not worth it at this point. I'll stay on the bench like I did in November. But if I have to buy, I would buy the best out of them all- Goldman Sachs.
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