Thursday, March 13, 2008

Jon Najarian

Bear Stearns Selling May Have Signaled Capitulation

The Carlyle default has ramped up the worries in the market about that nobody is too big to fail. Those that are being hit hard, include Bear Stearns, which is down over 16 percent on turnover of 24 million shares. Other brokers and i-Bankers are likewise feeling the pain, but that pain is most evident in BSC where over 140,000 puts have changed hands in the first 90 minutes of trading!

The average put turnover of the past 5-days has been 27,000 puts, so in the first 1 ½ hours to see us trade over 5 times that pumped up volume, well it SCREAMS how desperate things are in BSC. To see such large turnover in Bear stock (3 times normal full session volume thus far) and options suggests we may be seeing the capitulatory selling that marks bottoms. That’s not the glass half empty argument folks. There is both blood in the streets and panic in BSC.


By: Jon "DRJ" Najarian

8 comments:

z-stock said...

hi Stewie,
I was looking at your chart on GG from yesterday's post. Is that a short sell signal?

36 = 100 day and GG keeps finding support at 100 day
zee
I think GDX might top out at $57, if it gets that high.
thanks zee

fish said...

"Bear Stearns Selling May Not Have Signaled Capitulation"

- me

And i've got just as much chance at being right as they do.

fish said...

Where do I sign up for my tv contract? Financials are in so much trouble, everyone just doesn't want to believe it.

Stewie said...

you be right FISH. this continues to be a news driven market. with financials bringing down everything. hope you are profiting.

fish said...

Thanks, you too. Had a nice day with some LEH puts I was purchasing during the rallies this week, didn't get greedy. Will sit on some FNM puts for a while...

I like slowly adding some puts on the VIX when it spikes over 30 as well.

Thanks for the great blog.

Stewie said...

good for you fish. interesting. stop by for often dude. would love to chat with ya some more. good luck bro.

Blue said...

What about GS on Tues. They're esitmates have been lowered 9 times already. Are they being set up for a rallie or what? They report before market open on Tues. I believe.

Can GS undo what BSC did today? I was holding GS this morning too. Shoulda had a stop loss on that one.

Lets talk about BSC on Mon. GS Tues. morning followed by Fed Rate Cut and Visa IPO'ing on Wed? We got a huge week of all financials starting Monday. I might stay home from work all three days to capitalize on this.

Stewie said...

next week will nuts. so much action/news/earnings etc. It will be very volatile and should give tons of opps.

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