DSL Long Term Chart

A few months ago DSL broke down out of a two year symmetric triangle. It dropped 42% on increasing volume to find a low at 43.55 on record volume. Since then, a mild euphoria has swept over share holders of the savings and loan company as it climbed 45% to touch the bottom side of the triangle at 63.17. If this 45% rule continues and the stock completes something of an ABC correction, then it could see 36.64.

Of course that might be alot to expect out of any ordinary stock, but then again...

Acording to yahoo, DSL "originates and invests in loans, such as residential real estate mortgage loans, investment securities, and mortgage-backed securities; and originates and sells loans to investors in the secondary markets." Oh, you know, that sector of our economy which has completely fallen apart this year as the housing market tumbled. And while wall street likes to huddle around and sing kumbuya to their god, Ben Bernanke, the fed's desperate rate cut to save the markets isn't going to reverse the popping housing bubble. Just wait until earnings start coming out for these mortgage companies. Did no one listen to what Citibank said earlier this week? Good grief!

Dunno, it looks like a golden short to me so I bought some 60 puts.