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By Roger Nusbaum, greenfaucet.com

I received an email in my Street.com account asking a question about buying Bank Of America (NYSE: BAC) after this recent step down. The catalyst for the email was a couple of articles I wrote about the stock for TSCM. The first article was from September when I sold the stock for all clients because I did not have faith in a big merger and specifically did not understand how due diligence could have been performed so quickly. The second article published yesterday and was a follow up now that the merger was completed. It was after that second article published that more news on BAC came out sending it now below $8.

What I want to focus on here is the concept of risk budgets. Part ...

By Jim Farrish, greenfaucet.com

What is really nagging the market? The jobs data was bad, retails sales were bad, but they were not worse than expected. Something has changed as the solid uptrend that was in place went from higher lows and higher highs, to distribution in a matter of days. The catalyst for hope was the stimulus package from Obama and the tax cuts to go with it making everyone somewhat happy or at least optimistic. It seemed all was well on Wall Street and in Washington. Then the inevitable came along - dissension in the ranks. There are those on Capitol Hill who oppose the stimulus package the way it is being proposed and they are actually Democrats. The majority party in Congress want to dictate to the President ...

By Roger Nusbaum, greenfaucet.com

I've been in Florida this week to speak at an ETF conference about sector investing. In the middle of the trip I had a thought, triggered by the latest in the Citigroup saga and the most recent price action in Bank Of America (BAC) that relates to sector investing.

As it was an ETF conference the panel I sat on was about sector investing with ETFs. Well investing in the financial sector via ETFs possibly has more risk than picking individual stocks. While there is no way to know whether there will be more bad news and price declines for the big banks surely no one would be surprised by more bad news and price declines. Really the open ended nature of further write offs, desperate ...

Host Chip Hanlon welcomes popular greenfaucet contributor and renowned currency expert, Kathy Lien, to the program to discuss the second edition of her bestselling book "Day Trading & Swing Trading the Currency Market" available now at Amazon.com. Don't miss this exclusive interview with one of the world's top currency traders.

Market Neutral: Kathy Lien Interview