The SPX is in a similar situation as the Dow. 200/50 DMA's have been broken. 850 looks like a possibility here.
The NASDAQ looks a little better, just barely.
My personal favorites - The Banks. These guys like I have stated before stopped going up 6 weeks ago, now they are firmly on the sell side.
Recent Secondary offerings like I stated before are all under water except for BOFA, which is painfully close.
What ever has been done by the government to fix the situation has only moved the deck chairs on the Titanic from the front of the ship to the back. I will stand by this statement.
If we get bad earnings or guidance from Wells, BOFA, JP, MS, or GS, we can have a serious down spiral here. The back up in rates which has killed REFI applications doesn't help.
Good News - I THINK?
Gold broke both its 50/100 DMA. So much for Inflation? or Just Long Liquidation?
Your guess is good as mine.
I am always happy to see Crude go down for obvious reasons. The recent rally in Crude/Tech led the global markets higher, it wasn't Banking folks. Crude can drop to low 60's and still be in good shape but the subsequent liquidation in the energy stocks can leave us in some pain.
The Good Days are gone in Energy Land.
Bonds are way oversold and trying to bounce. This is also a key barometer. If the bonds can someone how find a bid, it will deflect some of the pain away from our markets.That is a big if with the new supply coming in this week. It will also relieve some stress for the financials as they can go back and make loans/mortgages. But the off shoot of this is you don't want a repeat of sell equities and hide in bonds trade.
What do you think the effect on the banks will be after the recent news that Goldman is on pace to have the best year, earnings wise, in the 140 year history of the company.
ReplyDeleteThere are HUGE bonuses suspected to be paid, especially to the FI and FX traders. That would tell me that their earnings for the year would be astounding and would help the banking sector a lot. Although it is said that they do not have much competition, which tells me other banks may not be in as good a position, could Goldman hold up some if not all of the banks?
No effects on the banks except that all banks will pay out record bonus payments this year. That's all...all funded by you the taxpayer.
ReplyDeleteIts all phantom profits.
Its a great biz model....borrow money from TLGP....refinance trading book...make billions, pay out bonus money, if things go bad....let Taxpayer pay the tab.
How do you like them apples?
Thanks For the Post.