Can Somebody tell me why I shouldn't buy the SRS here?

[TrueProp]

Quote from MrDODGE:

SRS has been tanking because of rumors that the government is going to announce that CMBS' are part of the TARP.

Do you really want to trade against the unlimited funds of the US government?

I don't know. Ask the people that bought MS MER C BAC and GS on the way down each time the US Gov't announced a plan to provide financing -- trading with the gov't hasn't necessarily been a full-proof plan.

Either way, even the plunge protection team takes breaks...all buyers eventually take breaks. If we're waiting for more quant funds to capitulate, that's fine with me too. I'll wait and daytrade the intraday swings. When buying takes a break, I'll be there to capitalize on a multi-day, if not multi-week hold short.

 

[NYC212]

Quote from bevo96:

Be careful with these levered ETFs. Its probably a better trade to go short the SRS and short SPG. Goldman putting a conviction buy on SPG is one of the funniest things I have seen (and thats saying alot in this environment).

A friend of mine called his buddy on the GS CRE desk and told him about it this morning. He said the guy laughed for 30 seconds before he convinced him he was serious and he looked for himself. What does that tell you about the free reign these guys have right now.

The CRE desk has SPG deals they cant move and yet the analyst are making it a conviction buy after the firm is lead on a secondary offering.

LOL. It is unbelieveable.

it did go from 39.00 to 50 a share in a few days. (went down today) but someone is laughing all the way to the bank