I’m not offering any advice on any particular stock even though I’m still in the market. The past 3 weeks have been just insane. Bank failures, buyouts, acquisitions, 700 pt dow swings, 10 percent snp swings and its not over.

Everyday companies such as Wachovia, Freddie, Fannie, the former LEH and other stocks hit hard by this bank crisis go up and down a ridiculous percentage. But this isn’t exactly investing if you dare to enter, this is 50/50 click and pray hoping to catch the right wave at the right time. Oh wait, you can’t catch the wave down anymore, my bad.

I’ve been thinking about how to make money off this mess. Now, first we have to make some assumptions. Lets assume shorting is available. These swings in these stocks are ridiculous, 20% minimum almost daily. If you think theres a 50% chance of an up swing and 50% chance of a down swing, why not just set a stop loss of say 10% and a limit sell of 20% gain. I know there are alot of flaws to my approach, the very one I used to short both WB and WM but get stopped out and then didn’t reenter. The problem I would say is continually doing it and having those stop losses taken out at exactly 10%. Since news usually comes out overnight and I don’t know if your stop loss will execute into after hours. If it doesn’t you could lose big. Also, even if it did, most of the movement of a stock like the ones that have been bouncing up and down don’t move as big intraday so you got to risk holding overnight which is substantially riskier.

I know its flawed, just my 2 cents though