Credit Suisse, this wouldn't be the first time we have talked about CS and this was actually an older trade quite a while ago as it broke a major top. In any case, just as in 2008, the credit ratings agencies are always lagging badly and tend to downgrade long after the market has voted. Moody's announced shortly ago that CS will be put on a downgrade review. We've also recently talked about Blackrock (BLK) as well as Barclay's (BCS).
Here was the first time CS was talked about as a short, that worked out fairly well.
Here's today's reaction to the Moody's announcement today.
The bottom line is that financials are still in that opaque 2008-esque state in which no one knows who holds what risk. I think financials as I have stated recently, will be the first area we look for specific stock picks as the market moves from strictly directional trades to starting to really go after some of these banks.
More will follow, but as mentioned, looking at the first chart, the market voted long before the rating's agencies did their job.
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