The Much Maligned [Lately] GOOG Bounces While PXRE Group Slides 70%...

Predictably, after getting "leaned on" in that spoof-financial magazine called Barron's, GOOG bounced from $335-$345 after cleaning out the weaker hands who bought at the very top (above $450) and then panicked when the going got tough... The stock looks destined to retest $385-$400 in the short run before eventually heading lower towards the low $300s.

How about that reinsurance former hedge fund darling called PXRE Group (ticker: PXT) though? The stock is off some 70% after S&P cut the company's debt rating to 'junk' on greater-than-expected hurricane claims. Consequently, some of the biggest names in the hedge fund industry (who had bought loads and loads of the stock during the fourth quarter of 2005), took a big bath today -- we are talking about [among others] DE Shaw, Och-Ziff, Perry Capital, SAB Capital and the bluest-bloods of them all -- Eton Park Capital, founded by ex-Goldman prop traders. The lesson is that bad stuff can happen even to the best investors out there... especially in a crowded long name such as PXT (which might have looked like a "value buy" only 3 weeks ago). Unless of course you are Chuck Norris. :-)