MBIA Inc (MBI)

[emptypockets]

I think it's going back to at least 5.60 by next week. Too much selling volume on this today in the low 6's which leads me to believe investors are still not comfortable with it being this high right now.

Also Ambac is on the verge of bankruptcy now and that scares investors away from this sector. The explosive rally MBIA had on Wednesday thanks to BAC's announcement was pure speculation and little else. There's still concerns about MBIA's health in the future, and this news from ABK didn't help that picture. I'd rather be short this stock right now going into next week than long, especially after it had such an over exaggerated pop.

On the other hand if the market continues its upward climb in the coming weeks, MBIA probably will not get left behind, so I'd say there's a possibility it could crawl back to 6.5 in April.