Sunday, April 27, 2008

Just when you thought financial are out of the woods.

Here is something for Bears and it comes in pairs and companies might be in despair - am I rhyming?
But anyhow without further due let me introduce what might just became the latest "victims" of CDO, CDS, CSO, UFO ( I think UFO does not belong here - but as much stupid as all other greed and stupidity inspired "packages") and other "gArbAge" bonanza.

(PRU) and (HIG)
both have formed Head&Shoulder Tops (since March 08) which considered to be one of the best performing BEAR patterns even in the Bull Market ( which we are not in at that particular juncture of the pay back time), downside expectation is well over 20%.

Not much of fundamental guy, but knowing how much of insurance busyness based on deceit (try to get your money out of them and if you lucky and they paid, try to find another insurance after submitting just one claim ) I would think that LEVEL III cloud is still somewhere underneath and it'll pop up any time soon - for now, I bet they hope "subprime crisis" will be fixed and when it'll be time to PRICE "conveniently illiquid assets" "they" will be fine.... I guess CHARTS TELL US OTHERWISE.

Monday will be the time for me to get my hands on as many (PRU) and (HIG) puts as it is safe to hold.