Wall Street Manna

An irreverent look at Wall Street

Thursday, September 18, 2008

The Pole-Axe bottom!

I'll take it!


Anyone remember this post after the market close yesterday?

Another sacred cow, State Street (STT 64.75) was down $7 today. One of their big sources of income is facilitating short selling. From their latest 10Q:

The increase in securities finance revenue was primarily driven by wider average credit spreads, which were partly offset by lower volumes of securities on loan.

How much did their securities finance revenue grow last quarter? 117% to 352 million. They made more here than with management fees!

Anyone think a ban on shortselling will affect their business?

Pole-axe this sacred cow, and we get a trading bottom!

http://www.aaronandmoses.blogspot.com/

How about that Pole-Axe today? State Street opened at 68.70 and traded down to 29. A 40 point range! Down 37 pints from the close. You think that wasn't a pole axe? But I picked up stock at 37, 35, and 33. It closed at 59, but not with me! I gave it to him at the close!

Anybody think this wasn't a pole-axe? How about Morgan Stanley-It traded under 12, and closed at 22. Even Goldman was pole-axed down to 86, before closing at 108.

That is a pole-axe bottom!!

We had short selling rules in the US, no short selling of financials in the UK, Cramer talking about financial terrorism on CNBC, and news of a RTC type bank/housing bailout!

That my friends, happen at bottoms. And now that the government is getting all in, they decide to finally move!

And we get a pole-axe bottom.

As advertised!

Tomorrow's script today!

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