Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Ambac Financial
So What: The trade of yesterday has become the trade of today as investors go long mortgage insurers and short banks. This has driven Ambac shares up and has driven much of the financial sector lower today.
Now What: When attorneys general announced they were looking into mortgage foreclosures, the short squeeze was on in Ambac. Call options drew more than 10 times the normal volume yesterday, and the trade higher is continuing today. MBIA
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