Today was just more noise, but I want to reposition my bank trades.  To that extent, I'm going to close the following trades:

• Short Banks, closed at 45.70, for a gain of $143.38
• Long JPM, closed at 37.58, for a loss of $14.59 
• Long GS, closed at 160.46, for a gain of $119.32

I had been long JP Morgan Chase in the thought that they were the most politically connected of the big commercial banks, but the truth of the fundamentals is that they're just as fucked as all the other commercial banks.  Goldman Sachs is the one bank that's different, and as far as being politically connected, they are the government for all intents and purposes.

My new and reestablished positions:

• $15,000 Short Banks, as measured by the BKX index, marked at 45.70
• $5,000 Short Bank of America, ticker BAC, marked at 11.56
• $10,000 Long Goldman Sachs, ticker GS, marked at 160.46

This leaves me $20,000 short / $10,000 long as before, but with a risk profile I greatly prefer.  BofA is easily in the worst position of the big commercial banks (financially and politically), and if there is to be a 'sacrificial lamb', they'll almost certainly be it.  In the event of a wholesale change to the banking system, I'm still net short.

These changes put my cash balance at $4,436.02.  Results for Week 2 on Friday.

Posted by: Hermit Dave at 11:47 AM | No Comments | Add Comment
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