Took the 3%+ profits from the VLY short and rotated to 45k ASBC short versus my FNFG long position.

While I think VLY is still a bit pricey here relative to the KRE index I feel ASBC makes a better short at the given time. While ASBC beat analysts' eps expectations this quarter, it still is showing eroding asset quality. NPA this quarter rose to over 4% of total assets. ASBC's eroding asset quality and commercial real estate exposure make this an easy short here. There is no reason for ASBC to have ran this far up over the market.

While ASBC has made a very strong run into the end of the month virtualy outperforming every bank in the KRE index by a lot. Way too much. This move was most likely made by some hedge fund or Mutual fund trying to mark up their book for the end of their fiscal year which ended this month. Or else someone was made aware of some news no one else is privy to, but I doubt this is the case. Bottom line ASBC has made a move WAY TOO MUCH WAY TOO FAST.

With that said, I am short 45k ASBC versus 45k FNFG looking for 5-7%.

I currently have no position in VLY.