If only I'd waited an extra day to buy it I could have made WAY more than the 6.6% I ended up with (which I suppose I can't complain about in 3 days), as the stock was getting smashed down on Wednesday. Ah well, can't have it all.
Not entirely sure what's driving the stock up 10% today, but I'll take it, I was mildly worried on Wednesday both with the price action and the very bearish commentary that was around on the company and the sector.
Away from MBIA, I'm still mulling over what to do with Countrywide...I guess there is now a floor under the stock (at least for a while), and some potential of upside if anyone else is stupid enough to come and buy them, or if shareholders gripe about the price enough to make BoA raise it's price.
Finally, some new trades I am considering are:
Firstly, shorting the Spanish stock market (IBEX35), as Spain is clearly going to crumble in this credit crunch...you can read some very bearish stuff here.
Secondly, I'm probably going to sell some Hungary FX, just not sure what to do it against yet. I've read in the past that Eastern Europe is running large deficits, and surely that will be punished in the midst of a credit crunch and a global slowdown...see here for recession talk in Hungary. I don't particularly like the Euro or the Dollar here, so I may go long either Swiss Franc or maybe even Aussie Dollar against it. As always, will keep you posted.
Yours,
2and20
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