Question About Financials

Question:
Do u really think I can short COF? If all financial stocks are worth to short, how about BoA and BCS? Those two seems still has room to surge...What do u think?

Answer:
Yes, I think COF is one of the good short candidates after this bear market rally is done. Financials may go up a little before the trend reverses. BAC, C, JPM, WFC and etc, are a little different, because they are "too big to fall". Remember I said on Oct 2008 to you: "C will be gone in next 3 to 4 months". It was not totally gone, and it would have been if government did not bail it out. So my point is: all the financial prices are over-valued and they still have a lot of over-valued toxic asset on their balance sheet. But short those big guys will not be more profitable than shorting smaller ones because government will bailout them again, and SEC will ban short selling on their stocks.

Didn't pay too much attention on BCS, but $29 - $32.50 seems a good stop range for BCS.