I looked at the chart. Only in the most bearish times of 2005 and 2006 did GS ever hit its 200 day moving average. The times dont seem all that bearish right now when compared with yesteryear.
For example, in 2006 when Goldman inched down towards its 200 day moving average we had Iraq tension, Iran tension, the thought of impending recession, the Iranian President on television everyday with his nuclear program, 78 dollar oil, Bernanke being mean on TV, etc. There was a host of factors and the market was in big decline.
In 2005, there was another set of factors and GS moved towards its 200 day moving average. Violated it for a short time, pivoted and moved higher.
This time around is different I believe. It has been mentioned that Goldman is more like a hedge fund then a broker. If this is true, then all of the other publicly traded hedge fund companies are doing poorly as if there is more bad news ahead. Both Blackstone and Fortress look more like yesteryears ethanol companies with the IPOs opening high and the stock trading lower with each passing day. Sears Holdings is a hedge-fund-like company and the 200 day average for that was broken a while ago despite multiple Cramer pumps.
If we look at the either the $XBD, $BKX or the XLF, none of those indexes appears especially bullish. JPM, MS, BSC and MER do not appears bullish at all. While the Dow and the SPX have been making new highs, all of these indexes, etfs and stocks continue to break down.
I can only conclude that there will be more pain in the coming days especially if the greater market experiences weakness which seems to be a possibility.
Eventually Goldman will have to reveal what is happening to its subprime portfolio. I remember those days earlier in the year where these companies were buying up what is left of the New Century portfolio. BSC was able to keep a tight lid on things until they could not.
Judging by how Goldman is trading right now, there is probably someone who knows the truth. The truth is something we will find out in the future...
For example, in 2006 when Goldman inched down towards its 200 day moving average we had Iraq tension, Iran tension, the thought of impending recession, the Iranian President on television everyday with his nuclear program, 78 dollar oil, Bernanke being mean on TV, etc. There was a host of factors and the market was in big decline.
In 2005, there was another set of factors and GS moved towards its 200 day moving average. Violated it for a short time, pivoted and moved higher.
This time around is different I believe. It has been mentioned that Goldman is more like a hedge fund then a broker. If this is true, then all of the other publicly traded hedge fund companies are doing poorly as if there is more bad news ahead. Both Blackstone and Fortress look more like yesteryears ethanol companies with the IPOs opening high and the stock trading lower with each passing day. Sears Holdings is a hedge-fund-like company and the 200 day average for that was broken a while ago despite multiple Cramer pumps.
If we look at the either the $XBD, $BKX or the XLF, none of those indexes appears especially bullish. JPM, MS, BSC and MER do not appears bullish at all. While the Dow and the SPX have been making new highs, all of these indexes, etfs and stocks continue to break down.
I can only conclude that there will be more pain in the coming days especially if the greater market experiences weakness which seems to be a possibility.
Eventually Goldman will have to reveal what is happening to its subprime portfolio. I remember those days earlier in the year where these companies were buying up what is left of the New Century portfolio. BSC was able to keep a tight lid on things until they could not.
Judging by how Goldman is trading right now, there is probably someone who knows the truth. The truth is something we will find out in the future...