Saturday, June 13, 2009
Goldman Sachs - keep your eye on the pig
Fat, sassy, and the poster child for all that is wrong with Wall Street. They're sharks and tough as nails until things get rough and then they steal, cheat and cry. They have infiltrated governments and have insider information and yet they still managed to get creamed in the ongoing financial collapse.
The chart of Goldman Sachs (GS), love 'em or hate 'em, is an important bellweather for the stock market in this vicious cyclical bear market within the context of a secular bear market that is far from over. Once GS cracks good and hard, the bears will be coming out of the woodwork to short anything with a pulse. I never thought they could make it this high on the rebound and they are now at nosebleed, make-or-break levels.
I think this pig fails and takes down the stock market with it, but to the charts (an 18 month daily candlestick affair):
Here's the financial sector as a whole using the XLF ETF as a proxy (also 18 month daily chart):
And the internals are slowly crumbling using a bullish percent chart of the financial sector:
I am uber-bearish on the stock market and never though this sector would rally this high, to be sure, but here we are. The fireworks are imminent and the carnage this bear is about to reap will spare almost no company with a ticker. Once GS breaks cleanly, we're going down hard and it won't take long.