Trading Mom » lehman brothers http://tradingmom.com Stock trading in extreme conditions Thu, 17 Dec 2009 19:53:41 +0000 en hourly 1 Lehman, Wachovia, Washington Mutual… – which one is going to be next? http://tradingmom.com/lehman-wachovia-washington-mutual-next/ http://tradingmom.com/lehman-wachovia-washington-mutual-next/#comments Wed, 10 Sep 2008 09:04:13 +0000 admin http://tradingmom.com/?p=29 Which of the big banks is going to be next to fail and how many of them are going to be rescued?

It looks like US government is taking a bite it can’t chew.

]]> http://tradingmom.com/lehman-wachovia-washington-mutual-next/feed/ 0 Is Wachovia out of whack? http://tradingmom.com/is-wachovia-out-of-whack/ http://tradingmom.com/is-wachovia-out-of-whack/#comments Fri, 01 Aug 2008 20:17:13 +0000 admin http://tradingmom.com/?p=18 As if it was not enough for us to pull money out of Wachovia, I also shorted its stock @ $17.05. On one hand I was surprised that the short sale went through, as I thought SEC has protected big banks from the short sellers. On the other hand, I was disappointed to see that my shorting level was not perfect – the stock went up to $18.32, before being pulled down by the market to $17.27 closing price. Today it got even worse, with WB touching $19.11 high (so far). Both days I had a way out with some profit ($16.30 & $16.60 lows, accordingly), but the nightmare of getting out of a similar Lehman Brothers position a few months earlier prevented me from disposing this short.

Lehman Brothers 6 months weekly chart

It took LEH about 2 months to start falling toward a “panic level” of March 17th – $20.25 from the $45+ it rebounded to almost immediately afterwards. Slow, yet stable decline from May 16th to July 15th, brought Lehman Brothers stock to $12.02.

Wachovia panic level was $7.80. It rebounded to $19.55 almost immediately.

Wachovia 6 months weekly chart.

Two questions remain unanswered:

- Would Wachovia follow Lehman Brothers pass? If yes,

- How long would it take Wachovia to start moving toward the “panic level”?

After all, just look at the flyer I used to get in my Long Realty’s mail box every week until a few days ago:

Wachovia loan products

How much in bad loans would Wachovia write-off in the third-quarter?

LEH – Lehman Brothers Holdings Inc.

WB – Wachovia Corporation.

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