Anyone feel like shorting a bank? I'm tempted… NASDAQ:CSNT (Crescent Bank and Trust Company). It has a Texas ratio of 4.11. Above 0.90 is in FDIC takeover territory.
“The Texas ratio is determined by dividing the bank's non-performing assets by its tangible common equity and loan-loss reserves. Tangible common is equity capital less goodwill and intangibles. As the ratio approaches 1.0, the bank's risk of failure rises.
Every bank that has failed in the second quarter has had a Texas ratio of greater than 0.90. In fact the average was about 5.0.”
Yes i am seeing some more room for the bulls too. Just saw Dow Weekly chart if it closes above 10000 the next resistance is coming around 10200. I will update the chart later
We have a gap that needs filled around 1070 (plus the f@ke print I have), and that's my target for tomorrow. After that, I think she will sell off… assuming we rally up there first?
Thanks for the update San. I think we could go to 1070 tomorrow morning, but close lower. That's the highest area I see us going for now. After tomorrow, I think Friday is going to sell off hard.
Good Morning Gang…
Looks like we are off to the races again this morning. Look out above 1070 here we come.
Oh Red you have a delightful turn of phrase and I sooooo hope your right!
I couldn't advise on that, as I don't study that area. Maybe someone will be able to help you tomorrow?
Slightly off-topic… but…
Anyone feel like shorting a bank? I'm tempted… NASDAQ:CSNT (Crescent Bank and Trust Company). It has a Texas ratio of 4.11. Above 0.90 is in FDIC takeover territory.
“The Texas ratio is determined by dividing the bank's non-performing assets by its tangible common equity and loan-loss reserves. Tangible common is equity capital less goodwill and intangibles. As the ratio approaches 1.0, the bank's risk of failure rises.
Every bank that has failed in the second quarter has had a Texas ratio of greater than 0.90. In fact the average was about 5.0.”
CSNT is one of the few banks on the list that is on NASDAQ and might actually be able to borrow shares…
Nifty source of doomed banks: http://investinganswers.com/a/your-bank-one-433…
Does someone want to talk me out of this one?
Dow Jones analysis after closing bell
http://niftychartsandpatterns.blogspot.com/2010…
Ok, thanks…
Yes i am seeing some more room for the bulls too. Just saw Dow Weekly chart if it closes above 10000 the next resistance is coming around 10200. I will update the chart later
We have a gap that needs filled around 1070 (plus the f@ke print I have), and that's my target for tomorrow. After that, I think she will sell off… assuming we rally up there first?
after seeing today's price action some follow up can be expected. But it is already overbought. Let's see what happens
Thanks for the update San. I think we could go to 1070 tomorrow morning, but close lower. That's the highest area I see us going for now. After tomorrow, I think Friday is going to sell off hard.