In addition to following the progress of subprime lenders who might present a good trading opportunity, I think we should also track any other industry that is closely allied to lenders.
For example I would watch the builders like TARR, WCI, BHS, BAM,
MTH, LEN, and SPF. If you research these companies you may find that significant insider purchases have been made within the last few weeks and on WCI Carl Icahn has been named chairman and is effectively in control of the company. WCI trading well below its 52 week high rejected a $22 per share buyout from Icahn early this year. Now the stock trades at around $7. You want to bet that Icahn still believes this to be a $22 stock? I will follow these companies carefully to see if all that insider buying will translate into hirer prices per share.
LT