The short squeeze is getting to be a tourniquet!
Bank of America earns .72 versus .54 of estimates. BofA had higher interest margins, and said that the Countrywide purchase would be immediately accretive to earnings! It is also the largest bank exposed to commercial mortgages, meaning that another of the shorts' bogeys is on the back burner.
And the shorts are steam-rolled over on their backs!
SunTrust reports earnings tomorrow. Does anyone now believe the Armageddon scenario that the shorts played out last week?
Looks like the shorts "revelation" was that of a false "profit!"
American International Group (AIG 25.07) and Prudential Insurance (PRU 61.67) are the derivative play on BAC's earnings.
And if you are short these numbers, and you don't know why that is, you haven't been doing your homework!
You have can still cover these numbers at these prices, and consider it a gift. Or you can wait until they report and get crushed!
Couldn't happen to a nicer bunch!