This is the 2nd company I am shorting of the trio in credit card companies [Feb 18, 2009: Trio of Consumer Death in Credit Card Market Marches On] - American Express (AXP); started today near $14.30. Just like Capital One Financial (COF) these will be long term shorts I will treat just like long term longs... hold a core position and trade around the edges. All that is left is Discover Financial (DFS) but two should do the job nicely. These were names I highlighted since 2007 as I foretold of the coming carnage in the consumer space, but unfortunately at the time I could not short individual names. A lot of the meat has been taken off the bone already, but I'll settle for scraps.
I'm starting with a 2.2% stake as the stock motors into resistance at the 50 day moving average. I'll add if the market begins to weaken... for all my shorts I am proposing a potential move up to S&P 870 in the coming weeks so I am adjusting position size (smaller) for now.
[Feb 24, 2009: American Express to Customers: Please Go Away! Here is $300 to Spur You to Leave]
Short American Express in fund and personal account
[Sep 15 '07: Consumer Spending Continues, Where is the Money Coming From? Credit Cards]
[Dec 10, 07 - Consumers Increasingly Turning to Credit Cards]
[Dec 23, 07 - Unpaid Credit Cards Bedevil Americans]
[Jan 10, '08: Credit Card Warnings Here, Credit Card Warnings There]
[Apr 10, '08: Americans Keep Piling on Debt]
[Apr 4, '08: Late Payments on Consumer Loans at 16 Year Highs]
[Jun 3, '08: Credit Card Usage is Surging, Risking Another Debt Crisis]
[Jun 22, '08: Americans Running Out of Places to Hide Debt - Now Credit Cards Go]
[Sep 23, '08: Loan Delinquencies Continue their Path Upward]
[Oct 21, '08: Moody's - Credit Card Chargeoffs Rising Rapidly]
[Dec 15, 2008: Capital One (COF) Updated us on Delinquency Rates]
Did you like this article?
's
