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Why I'm Shorting the Lenders While Everyone Else Chases the Bounce

Author

Don Kaufman
November 18, 2025

This Black Friday, we're doubling your TheoTrade buying power. 

Spend $1,000, get $2,000 in credits. 

Don't be the trader who waits too long while the smart money is already positioning. 

Hey, it’s Blake. 

Question for you…

What happens when borrowers who financed cars at $50,000 can't make payments on vehicles now worth $35,000? 

I've been positioning for this credit reality for months.

While everyone focuses on AI partnerships and crypto volatility, I've been building short positions in consumer lenders. 

This problem isn't going away.

The Numbers Don't Lie

Ally just dropped into the oversold yesterday, traded back up into the overbought, then closed all the way down. If it stays below 37.45 by the close, I think we're heading to 35.52.

Capital One Financial? Yesterday it went end zone to end zone. From $210 all the way down to $200. That's a 5% drop in a single day.

But here's the thing - we're not in these trades for a single day. I'm talking about a problem that could push these stocks into March, April of next year.