LEH Potential Short

Hey brett,
you are right about LEH. I am short MER too. but I am a little confused on USG. what’s your take on it? I have some Jan 60 calls. is it going to be worthless? Would appreciate your opinion.

Risky, risky bet trying to short the brokers — the Street is bullish across the board for the DJIA and S&P to hit new highs end of 07: there is a direct correlation with the EPS profiles of investment firms/banks/asset management plays and the how the overall market does.

We like Goldman in the space and would buy anytime the stock trades UNDER 10x EPS or 2.5x book.

The LEH resistance you point out could defintely be called resistance, but you can also interpret that formation to be the handle of a 7 month cup: if LEH is indeed a “cup,” then the next move up would be up.

Time will tell on how the Street wants to adjust LEH’s P/E….

Hey sega….When I take a look at USG, I have some bad news. Looks like those calls are going to expire worthless. It looks like it should bounce off the 50 or at least trade 2 pts below it. I would prob sell the calls and take the loss but at least it wont be a 100% loss. I know its hard, becasue, what if you sell and then it goes to 60 something later in the month? Its unlikely to happen but i sure know the feeling.

i know the feeling of expired options too well. i feel your pain. it hurts

From a technical analysis point of view and only a quick glance, I’d be looking for a breakout upwards with the overall market. Being weary of the fact that it has tried its resistance level 3 times, it might just go through next time if the market carries it.
I’m not up to scratch on this stock, so there is absolutely no fundamental reasoning behind my statement.
Great site. I’ll be back for a look around soon.
Cheers

from a view of the chart I would also be looking to go long on a breakout of the line.

I agree that you should go long on a breakout. But when I posted the chart, it should be played as a bounce. And bounce it did